Mozambique Country Economic Memorandum - Reigniting Growth for All - October 2021

Jul 19, 2026

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Mozambique Country Economic Memorandum examines the challenges behind weakening economic momentum and outlines a need to rethink the current growth model. It analyzes drivers of growth, including resource developments and LNG-linked investment effects, and assesses macroeconomic risks. The report applies a spatial perspective using satellite data to track district-level dynamics and poverty trends. It also evaluates the role of services in growth and how corruption affects firm performance, culminating in actionable policy recommendations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages136

Reading Time5 h 43 min

AccessFree to download

Executive Summary

Chapter 1. Rethinking Mozambique’s Current Growth Model

Economic growth has lost momentum in recent years

What’s driving growth in Mozambique

Why the current model needs rethinking

Chapter 2. Measuring and Macro-Managing the Resource Boom

Introduction

LNG investments and impacts

There are substantial macroeconomic risks linked to LNG development

Chapter 3. Mozambique’s Growth Story from a Spatial Perspective

Introduction

Satellite data helped to build a district-level GDP database

Policy recommendations

Chapter 4. Can Services Drive Economic Growth

Introduction

Can Services Become a Driver of Economic Growth

Strengthening the Regulatory Environment for Services

Chapter 5. How Does Corruption Affect Firm Performance

Introduction

How do firms in Mozambique experience corruption?

Recommendations

Public Disc losure Authorized MOZAMBIQUE COUNTRY ECONOMIC Public Disc losure Authorized MEMORANDUM Reigniting Growth for All October 2021 Pub lic Disc losure Authorized Pub lic Disc losure Authorized © 2021 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2020. Mozambique Country Economic Memorandum © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org). Cover Design: Florencia Micheltorena. Photo by Isono / IStocks, Photo by Gustavo Mahoque / World Bank. Page 4: Photo by Nathaniel Tetteh / Unsplash. Page 10: Photo by John Hogg / World Bank . Page 30: Photo by bfk92 / IStock. Page 48: Photo by ilyankou / Shutterstock. Page 70: Photo by RossHelen / IStock. Page 94: Photo by Nathaniel Tetteh / Unsplash Acknowledgements This report was prepared by a team led by Shireen Mahdi (Lead Country Economist, ELCDR), and Fiseha Haile (Senior Economist, EAWM1) . The team included Albert Pijuan (Senior Economist, EAEM2), Anna Carlotta Allen Massingue (Economist, DFCII), Elwyn Davies (Economist, ETIFE), Fernanda Ailina Pedro Massarongo Chivulele (Research Analyst, EAEM2), Martin Molinuevo (Senior Private Sectror Specialist, ETIRI), Jakob Engel (Economist, ETIRI), Patrick McSharry (Consultant, EAEM2), Hannah Nielson (Consultant, EAEM2), Halfdan Mangueira (Consultant, EAEM2), Dirk van Seventer (Consultant), Lillyana Daza Jaller (Consultant, ETIRI), Adriana Conconi (Consultant, EAEF2), Taciana Lopes (Consultant), Gabriela Schmidt (Economist, EAEM2), Brigida Tchamo (Program Assistant, AECS2), Adelina Mucavele (Program Assistant, AECS2), and Nani A. Makonnen (Senior Program Assistant, EAEM2) . Fiona Hinchcliffe provided editorial support. Florencia Micheltorena designed the report. The report was prepared under the overall guidance of Idah Pswarayi-Riddihough (Country Director, AECS2), Mathew A. Verghis (Practice Manager, EA1M2), Carolin Geginat (Country Manager, ECCAR), and Paulo Guilherme Correa (Program Leader and Lead Economist, EACS2) . The team would like to also acknowledge the crucial comments received from Andre Herzog (Senior Urban Specialist, SAEU2) and all the participant from the seminar session that preceeded the preparation of the report. The report was supported by the generous financial support from the Foreign Commonwealth and Development Office (FCDO former UK Government Department for International Development -DFID) . It also benefited from the Umbrella Facility for Trade Trust Fund. The team also gratefully acknowledges the collaboration with the Government of Mozambique. Regional Vice President: Hafez Ghanem Country Director: Idah Pswarayi-Riddihough Global Practice Director: Marcelo Estevao Practice Manager: Mathew Verghis Task Team Leaders: Shireen Mahdi and Fiseha Haile Table of C

FAQs

What problem does the memorandum identify in Mozambique’s recent economic performance?

It finds that economic growth has lost momentum in recent years and argues the current growth model needs rethinking.

How does the report evaluate the resource boom and LNG investments?

It analyzes LNG investments and their impacts, highlighting substantial macroeconomic risks linked to LNG development.

Which themes are used to explain growth and policy directions?

The report uses a spatial perspective on poverty dynamics, examines whether services can drive growth, and assesses how corruption affects firm performance, with corresponding policy recommendations.

Jul 19, 2026

Upload by Aria