The threat hanging over Mozambique’s economic boom

Mozambique's President Armando Guebuza (photo:dpa)
Mozambique's President Armando Guebuza (photo:dpa)

Mozambique is experiencing a period of unprecedented economic growth, largely because of its reserves of fossil fuels. But its economic success could be under threat because of the re-emergence of an old conflict which sparked the country’s 16-year civil war. There are also signs of social strife in its cities where large parts of the population have yet to feel the benefits of economic growth.

MOZAMBIQUE is emerging as one of the world’s fasted growing economies, with a GDP real growth rate of 7.2 per cent in 2011.

Foreign investment has poured into the country in recent years. Roads, airports and power supplies are already much improved.

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