Mozambique is a Portuguese-speaking country located in Southern Africa situated along the Indian Ocean. With a surface area roughly the size of Texas and Louisiana, the country’s coastline is over 1,600 miles long, extending from Tanzania to South Africa, or roughly the distance from Miami, FL, to Portland, ME. While the economy gained momentum in 2023 and was expected to grow by 4% per year between 2024 and 2026, the 2024 presidential election created an unpredictable environment. Marked by allegations of irregularities, the election raised concerns about transparency and sparked political unrest, including street protests and a collapse in public order that left over 300 people dead and damaged hundreds of businesses. 

The Confederation of Economic Associations of Mozambique (CTA) and the Center for Public Integrity (CIP) have estimated that Mozambique lost approximately $380 million – roughly two percent of Mozambique’s 2024 Gross Domestic Product (GDP) – as a result of the unrest. In addition, CTA estimates that looting and vandalism of property during demonstrations caused damages of around $45.5 million and put more than 1,200 jobs at risk. However, despite the tensions, the country transferred power in January 2025, with the new government under President Daniel Chapo gradually restoring order. The economic outlook at the beginning of the year was subject to considerable uncertainty caused by the post-election political unrest. According to the World Bank, the first half of 2025 reflected a contraction in GDP of 2.4%. 

However, recent developments indicate positive momentum for Mozambique’s energy sector and economy. These include  EXIM Bank’s $4.7 billion loan re-authorization for the Mozambique LNG project in March 2025, the October 2025 signing of a $5 billion concession agreement for the 1,500 MW Mphanda Nkuwa hydroelectric dam led by French company Electricité de France (EDF), the Final Investment Decision (FID) for Eni’s Coral Norte floating LNG (FLNG) project, and the lifting of Force Majeure (FM) by TotalEnergies and ExxonMobil in late 2025. President Chapo made a highly successful visit to the United States in October 2025 during which he expressed Mozambique’s strong interest in closer ties with the the United States. As a result of this visit, which included a meeting with Vice President Vance, both governments agreed in March 2026 to create an Economic and Commercial Bilateral Working Group. 

The security situation in Cabo Delgado continues to be a crisis marked by escalating violence from terrorist groups, mass displacement, widespread civilian atrocities (abductions, killings, beheadings), and a growing humanitarian emergency, with attacks spreading into new areas. In 2025, the Islamic State in Mozambique (IS-M) increased its activities in Cabo Delgado province and pushed deeper and more frequently into Nampula and Niassa provinces. The number of attacks attributed to IS-M rose, with local NGOs reporting 600 violent incidents in 2025, as compared to 334 in 2024. The geographic expansion of the conflict and higher number of attacks resulted in over 100,000 internally displaced persons (IDPs). Most incidents occurred in Cabo Delgado province, namely within Mocímboa da Praia, Macomia, Ancuabe, Chiúre, Montepuez, and Nangade Districts.  However, September and October brought a continued southward expansion of attacks into the Nampula province, namely Erati and Memba Districts, indicating deliberate targeting by IS-M of vulnerable rural communities away from areas protected by security forces. IS-M also increased its use of coastal (Pangane) and river corridors (Messalo and Lúrio Rivers) for mobility and resupply, traversing these corridors more heavily than in prior years.  IS-M’s key stronghold remains within the Cabo Delgado province.

South Africa is Mozambique’s largest trading partner, with China, India, the Netherlands, and Portugal rounding up the top five trading partners.  Investments in natural gas projects by France’s TotalEnergies (valued at $20 billion), Italy’s ENI (valued approximately $7 billion), and a separate consortium led by U.S. company ExxonMobil (valued at $30 billion) in Cabo Delgado are expected to create significant demand for U.S. exports. The United States and France are projected to be among the largest investors in Mozambique over the next decade.

The Government of Mozambique is dependent on donor support to provide many of its basic public services.  As of October 2024, the World Bank committed a total of $7.1 billion across 42 projects in the country.  The International Monetary Fund (IMF) remains engaged at the policy level; however, Mozambique’s Extended Credit Facility (ECF) program concluded in 2025 without completing all scheduled reviews, and the government and IMF are preparing to restart negotiations for a new program in 2026. The U.S.-supported World Bank and Africa Development Bank (AfDB) are the largest financiers of infrastructure development in Mozambique. 

The United States remains Mozambique’s largest bilateral donor; however, overall U.S. bilateral assistance declined from a FY2023 level of approximately $775 million, reflecting a strategic shift toward life-saving foreign assistance and catalytic investments, while encouraging greater Government of Mozambique ownership and fiscal responsibility in social sectors. This recalibration is particularly relevant in education, where external partners have historically financed a substantial share of public spending.

In December 2025, the United States and Mozambique signed a bilateral Memorandum of Understanding on health cooperation, reinforcing this new approach. Under the MOU, the U.S. Department of State, working with Congress, intends to provide up to $1.8 billion over the next five years to support priority health programs in Mozambique including HIV/AIDS, tuberculosis, malaria, maternal and child health, polio eradication, disease surveillance, and infectious disease outbreak response. Under this five-year MOU, the United States will provide enhanced, jointly agreed upon foreign assistance that is focused on sustaining life-saving services and preventing the spread of deadly and infectious diseases. Over the five-year period, and concurrent with the assistance provided by the United States, the Government of Mozambique pledged to increase its domestic health expenditures as a percent of its national budget by nearly 30 percent to gradually assume greater financial responsibility. 

In August 2025, the Millennium Challenge Corporation Board of Directors formally reaffirmed the continuation of the Mozambique Connectivity and Coastal Resilience Compact, ensuring that implementation of the $500 million program (and $37.5 million in counterpart contribution) will proceed.  The compact will bolster key transport and business enabling investments (including the Licungo River bridge and bypass in the town of Mocuba). In addition, the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA FAS) supports Mozambique’s education and nutrition sectors through the McGovern-Dole International Food for Education and Child Nutrition Program, implemented by World Vision and Save the Children, which delivers U.S.-sourced commodities and technical assistance to improve school feeding and literacy outcomes. 

In July 2025, the U.S. Government implemented a reciprocal tariff rate of 15 percent on goods imported from Mozambique. Although the United States maintained a goods-trade surplus with Mozambique from 2002-2022, over the past two years U.S. goods imports from Mozambique have exceeded exports, according to the U.S. Census Bureau’s “USA Trade” database.

Basic Economic Statistics (2023)
•    Total Population: 35.8 million 
•    Nominal GDP: $22.5 Billion
•    Nominal GDP Per Capita: $647
•    GDP Growth Rate 2024 (% Change): -1.9%
•    Inflation (% Change from Prior Year): 4.9%

U.S. Goods Trade with Mozambique in 2023
•    U.S. Exports to Mozambique 2024: $149 million
•    U.S. Imports from Mozambique: $216 million
•    U.S. Trade with Mozambique Top 5 Products in 2023

Imports:
•    Miscellaneous Manufactures ($116 million)
•    Minerals & Ores ($54 million)
•    Nonmetallic Mineral Products ($15 million)
•    Agricultural Products ($7 million)
•    Processed Foods ($6 million)
 Exports:
•    Petroleum & Coal Products ($103 million)
•    Processed Foods ($19 million)
•    Computer & Electronic Products ($14 million)
•    Machinery, Except Electrical ($13 million)
•    Transportation Equipment ($11 million)

More information can be found on ITA’s Industry & Analysis Country Reports. 

Political Environment

Visit the State Department’s website for background on the country’s political and economic environment.