Mozambique’s Political, Economic, and Climate Challenges: Struggles for Stability and Inclusive Growth

Mozambique continues to struggle with deep-rooted political and economic challenges, despite signs of economic recovery. The FRELIMO government remains dominant, with limited space for political opposition and increasing concerns over democratic backsliding. The municipal elections in 2023 and the presidential, parliamentary, and district elections in 2024 mark a crucial political transition, but a lack of transparency and institutional independence raises doubts about the credibility of these processes. Governance remains heavily centralized, and electoral fraud, political repression, and media restrictions have further weakened Mozambique’s democratic institutions. Additionally, the conflict in Cabo Delgado persists, despite international military interventions, with insurgents shifting tactics and expanding their operations into neighboring provinces.

Key Findings

Economically, Mozambique’s GDP grew by 4% in 2022, and projections indicate 7% growth in 2024, largely driven by liquefied natural gas (LNG) projects. However, inflation remained high at 10.3% in 2022, and public debt, though slightly reduced, remains a significant burden at 111.6% of GDP. Despite foreign direct investment (FDI) increasing, structural economic challenges persist. Over 60% of Mozambicans live in extreme poverty, with limited access to education, healthcare, and essential services. Rural poverty remains widespread, exacerbated by low agricultural productivity and climate shocks, while economic gains from natural resource extraction have not translated into broad-based development.

Mozambique is highly vulnerable to climate change, ranking among the most climate-affected nations globally. Recurring cyclones, droughts, and floods severely impact food security and infrastructure. In 2022 alone, 900,000 people were displaced by extreme weather events. Meanwhile, social services remain underfunded, with only 8.8% of the state budget allocated to healthcare and education quality lagging behind regional standards. Additionally, human rights concerns, corruption, and weak rule of law continue to undermine governance effectiveness. Without structural reforms, enhanced transparency, and inclusive economic policies, Mozambique risks further economic inequality, political instability, and continued vulnerability to external shocks.

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RESET Foundation is committed with the The Sustainable Development Goals (SDGs). The BTI Mozambique 2024 Country Report are closely linked to several SDGs:

The SDG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.