Mozambique
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Management and Change in Mozambique

Background

The Republic of Mozambique comprises some 800,000 square kilometres and a population of approximately 17.7 million. Its annual economic growth rate in 2000 was 2.1% GDP. Its GDP in 2000 was US$3.83 billion and per capita income of $222. Agriculture accounts for 30% of GDP with main export crops of cashews, corn (maize), cotton, sugar, sorghum, copra, tea, citrus fruit bananas and tobacco; and domestically consumed crops of corn, pigeon peas, cassava and rice. Industry accounts for 35% of GDP and includes aluminium production (one of its main exports), consumer goods and light machinery. Its main markets, in declining order are Zimbabwe, South Africa, Portugal, Spain, India, United States and Japan.

Forty five percent of the population is concentrated in the north-central provinces of Zambezia and Nampula (for a administrative map see www.newafrica.com/maps/administrative.asp?countryID=35). Ninety Nine percent of the population are indigenous African. Although there is a complexity of ethnic groups within the country (39 language groups are listed by ethnologue: www.ethnologue.com/show/_country.asp?name=Mozambique) its main cultural grouping are as follows (www.www.sim.org):

·        Northern (approximately 44% of the population): Makua (4,950,000) and Lomwe (1,347,000)

·        Central (22%): Sena-Nyungwe (1,227,000) and Shona-Ndau (1,100,000)

·        Southern (33%): Tsonga/Shangaan (1,503,000) and Ronga or Tswa (1,848,000)

With the inclusion of the Chopi group from the extreme south of the country in the Southern group, these are the three cultural groups we have used for comparison purposes within the study. However, our country sample is taken from the capital city and province of Maputo, and therefore is an over-representation of the Southern group (Southern – 91, Central – 17, and Northern – 15). Included in the sample are one coloured of mixed descent, and 3 of Indian descent. There are approximately 15,000 South Asians living in Mozambique. Portuguese explorers reached Mozambique in 1498 and had established trading settlements from about 1500. Although Portuguese influence increased from this time, it was mainly through individual settlers who were granted extensive autonomy by the Portuguese authorities whose formal powers remained limited. As a result of this Lisbon devoted itself to the more lucrative trade with India and the Far East, and to the colonization of Brazil. By the 20^th century Portugal had transferred most of the administration of Mozambique to large private corporations largely financed and controlled by the British. Railways were built by these companies to neighbouring countries and used to supply cheap African labour to mines and plantations in nearby British colonies and South Africa. With a focus on the interests of white settlers, little attention was given to national integration, economic infrastructure. This also left an under-skilled population. Portuguese immigration soared after World War Two (Portuguese settlers totalled 250,000 at the time of independence), with Portugal hanging on to its colonial possessions long after many other African countries had obtained their independence. FRELIMO was formed in 1962, and an armed struggle ensued from September 1964. Finally independence was won on 25^th June 1975.

With the setting up of a one party state under FRELIMO, allied with the Soviet Union, a civil war ensued, mainly through the efforts of the South African and Rhodesian financed RENAMO. With this, and direct or indirect sabotage by neighbouring states, the economy collapse. An estimated one million died in the conflict. The civil war ended in 1992 following peace talks, reform, a new constitution, and a turn towards a free-market economy. Over 1.7 million Mozambicans were repatriated from neighbouring countries where they had sought refuge, and an estimated 4 million internally displaced returned to their areas of origin. Over the last 10 years Mozambique has accepted extensive financial help via World Bank and IMF structural adjustment programmes, and has been a recipient of debt relief under the Heavily Indebted Poor Country initiative in 2000 and 2001. the average economic growth rate from 1993 to 1999 was 6.7%, with the figure for 1997-1999 at 10% per year. There were devastating floods in 2000 which slowed GDP growth down to 2.1%. the government predicts a growth between 7-10% a year over the five years from 2001. During this time economic reform has been extensive with over 1,200 state-owned enterprises being privatised, and preparations underway for the major parastatals to be privatised (telecommunications, electricity, water, airports, ports and railways. This has typically been through the government selecting a strategic foreign investor when privatising a parastatal (www.state.gov/r/pa/ei/bgn/7035pf.htm). This position is reflected in the UNCTD world investment report positioning Mozambique among the top African countries for foreign direct investment inflows and perceived attractiveness for FDI in 2000-2003 (UNCTD, 2000). Mozambique is a member of SADC and a signatory of the 1999 trade protocol, with the aim of creating a free trade zone among the 200 million consumers in the SADC region.

Despite these economic and investment indicators, the Human Development Index of the UNDP ranked Mozambique at 157 (sixth from bottom out of 162 countries).

Management Survey

Descriptive Statistics

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