UK's relationship with Mozambique

Mozambique is a medium-sized African country that emerged 17 years ago from a long period of civil war. It is a member of the Commonwealth and the UK has a long history of engagement in the country, both before and after independence from Portugal. Mozambique is widely seen as a post-conflict success story and a positive influence on other countries in the region. The UK Prime Minister visited when Chancellor; President Guebuza paid a Guest of Government Visit to the UK in December 2006; and Mozambicans – such as former President Chissano and Prime Minister Diogo - are engaged in various UN and other international fora.

 
The UK is one of the largest donors and foreign investors and is seen as a key international partner as they build on their transition to liberal democracy and free markets. DFID have a five-year rolling programme currently worth £60m a year, of which 75% is direct budget support. High level political engagement  - addressing issues such as political pluralism, governance, human rights and the necessary “second generation” reforms – is required to complement our financial support. Mozambique is already being affected by climate change (both floods and droughts) and has the potential to contribute to a low-carbon global economy by developing its nascent biofuels industry. Strong economic growth over the last decade has presented opportunities for UK investors, particularly in infrastructure, banking and tourism. These should increase with the exploitation of gas, oil (expected), coal and other natural resources.  But significant improvements in the business climate will be required if Mozambqiue is to continue to attract foreign investment and grow its SME’s during the global economic downturn.

Read the full country business plan: 2009-2010 for Mozambique