In this report by the CDD (Centro Para Democracia e Desenvolvimento), presents the evolution of Mozambique’s economic structure, showing how agriculture gradually lost importance to the growing extractive industry which in turn did not allow for strengthening of other sectors of the country economy. Mozambique is in fact moving towards an extractivist economy model. Below are some key findings and recommendations from the report.

Key findings

  • Abundance of resources in a country does not automatically lead to economic development and improvement in the living conditions for the population.
  • The Mozambican government aims to achieve inclusive growth and development through structural transformation based on diversification of production and import substitution as stipulated in the National Development Strategy 2015-2035.  
  • From 2010 and 2018, the extractive industry absorbed on average 70% of the Foreign Direct Investment inflows.  
  • The natural resource boom in Mozambique has not significantly contributed to economic growth, led to economic diversification, strengthened other sectors or contributed to poverty reduction. 
  • More than 50% of the population lives in extreme poverty and with considerably high levels of food insecurity and malnutrition, with the central and northern regions being the most affected.

Strategies to use natural gas for national development 

  • Use of gas for the generation of electricity. 
  • Production of fuel and related products to substitute those that are imported.
  • Promotion of manufacturing and services to generate economic opportunities along Liquid Natural Gas value chains under local content policies.
  • Production of fertilizers in large quantities and at low cost to promote greater productivity in agriculture.
Download the report by clicking the download buttons on the right.
  • What paths should Mozambique follow to ensure a greater contribution of the extractive industry for growth and structural economic transformation? DOWNLOAD REPORT
Share this post

Related items

Inclusive governance is essential to ensure that the extractive industry contributes to the structural transformation of the economy

This Policy Update report by the CDD (Centro para Democracia e Desenvolvimento)  summarizes the key messages from the Webinar on “Extractive Industry, Inclusive Governance and Structural Economic Transformation”

Intersectoral debates on youth employment and income generation in the extractive industry in Mozambique

The Policy Knowledge Community (PKC) in Mozambique held a kick-off workshop on 28-29 July 2016…

Involving the youth in Mozambique’s extractive industry

The Mozambican government has articulated its productive employment policies in various national policy documents. However,…

cover Policy update No. 6
Mozambique should revise upwards the percentage of 2.75% in favor of communities affected by extractive industry projects

This report summarizes the key messages from the first webinar of the series on “Extractive Industry, Inclusive Governance and Structural Economic Transformation”.

Natural Gas and Development: Integrating the Future Gas Revenues from the Rovuma Basin into the Local Development Agenda in Cabo Delgado

About 10 years ago, Mozambique was the scene of one of the largest natural gas discoveries in the world, with the potential to place the country among the top global exporters. However, resource-rich countries tend to have higher levels of conflict and lower rates of stability and economic growth