The economic growth of Mozambique has been one of the fastest on the African continent for a decade, with growth averaging at 7%, between 1993 and 2014. Conversely, the growth trend altered in 2016 to a rate of 3% from 6% in 2015, driven by a tumultuous commodity market, adversarial climate conditions and the resultant depreciation of the Mozambican metical.
In December 2016, the Mozambican Finance Ministry announced it would be spending a third more than initially budgeted for FY2017, with a total national budget allocation of USD 3.5 billion, due to a decline in supply of domestic and foreign loans. In fact, according to the IMF, the country had budgeted for a deficit of 11% to GDP, at a time when it still enjoyed financial support from the institution – prior to the announcement of the government’s undisclosed debt.
In terms of trade relations, Mozambique forms part of the top five South African trade partners within the SADC region. Trade between South Africa and Mozambique has been on a steady increase since 2011 with mineral products accounting for the largest share of exports from Mozambique whilst South Africa’s exports to Mozambique have been generally more diversified.