Trade with Mozambique - Mozambican businessmen active in West Asia

Mozambican traders

Mozambique, located in southeastern Africa, has a developing economy heavily reliant on agriculture, natural resources, and foreign investments. The country has vast reserves of natural gas, coal, and other minerals, which play a significant role in its exports. Key export commodities include coal, aluminum, natural gas, seafood (especially prawns), and agricultural products like sugar, tobacco, and cotton. The main export destinations for Mozambique are countries like India, China, the Netherlands, and South Africa.

On the import side, Mozambique relies on machinery, vehicles, fuel, electrical equipment, and food products. These imports primarily come from South Africa, China, India, and the European Union. The country's infrastructure and manufacturing sectors are underdeveloped, making it dependent on imported goods to meet domestic demand.

Mozambique's trade relations with Middle Eastern countries are growing, particularly in sectors like energy and agriculture. Middle Eastern nations, including the UAE and Saudi Arabia, are increasingly investing in Mozambique's natural gas and agricultural projects. The UAE serves as a key export destination for Mozambican goods, particularly seafood and agricultural products, while also exporting machinery, vehicles, and electronics to Mozambique. Investments from the Middle East are often tied to infrastructure development, energy projects, and agricultural ventures, strengthening trade ties between the regions.

The financial and banking system in Mozambique is relatively underdeveloped but has seen growth in recent years. The banking sector is dominated by a few major players, mostly subsidiaries of Portuguese and South African banks, such as Banco Comercial e de Investimentos (BCI) and Standard Bank. Mobile banking services have grown rapidly, offering financial inclusion to a population where many remain unbanked. The local currency, the Mozambican Metical (MZN), has faced periods of volatility due to economic instability and external shocks.

Economically, Mozambique has significant potential due to its natural resources, but it faces challenges such as high levels of poverty, corruption, and inadequate infrastructure. The discovery of large offshore natural gas reserves has attracted international investments, with projects led by multinational firms expected to transform the economy in the coming years. However, political instability, debt issues, and climate-related risks—such as cyclones—remain significant barriers to sustained economic growth.