Mozambique – with a population of 21.4 million people, out of which 43% are under the age of 15 according to the National Statistics Institute (INE 2010) – emerged from civil war twenty one years ago as one of the most impoverished and capacity constrained countries in the world. Since then, its overall economic growth has been impressive with an annual gross domestic product (GDP) growth rate of over 7.5% in each of the last five years leading to an estimated GDP of 10.5 billion US$ for 2011 (IMF 2011).
The country is also endowed with rich natural resources, including 36 million hectares of fertile land, out of which only about 10% are presently used for productive purposes having also numerous business opportunities. As part of its potential, the country has 2,470 km long coastline offering opportunities for fisheries and tourism. Three strategic ports and vital transport corridors serving its neighboring landlocked countries offer many opportunities for pro-poor economic growth.
The Government has demonstrated strong commitment to addressing the needs of its population and achieves the Millennium Development Goal (MDGs) and pursue policies to end poverty. The national plan for poverty reduction - PARP 2011-2014 - aims at pursuing inclusive economic growth and reducing poverty and vulnerability by focusing on the three general objectives: increased production and productivity in the agricultural and fisheries sectors, employment creation, and human and social development. Good governance, macroeconomics and sound public financial management are the indispensable supporting pillars for the achievement of these objectives.