Mozambique

Mozambique is a beneficiary of the EU's "Everything but Arms" (EBA) scheme for least developed countries. Mozambique is considered a low-income economy according to the World Bank classification with a per-capita income of $ 440 in 2022 Mozambique currently makes considerable use of the preferential access to the European market. Preferential imports amounted to €1,8 billion in 2022. Thus, over 90% of total imports from Mozambique are imported using EBA preferences.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Mozambique flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

32,97 M

Population

account_balance
Presidential Republic

Government

trending_up

4.40%

GDP Growth

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6.50%

Inflation

money

$ 18,41 B

GDP

44 ^

Freedomhouse index

3 -

ITUC Global Rights Index

31.7 v

Environmental Performance Index

Facts about Mozambique's economy

Economic Growth

Although growth rates recently slowed down, Mozambique can look back on a decade of significant economic expansion with an average annual growth of about 7%.

Export Products

Mozambique's most relevant export products are coal, aluminium, and electrical energy, petroleum gas but also raw tobacco, sesame seeds and raw cane sugar.

Trade Partners

Mozambique's most important trading partners are South Africa, the EU and India which together account for about 53% of total trade. Most imports originate from South Africa and China while the EU and India are the most important export markets.

Economic Structure

Agriculture is the mainstay of Mozambique's economy and consists mainly of smaller, family-run operations. Corn, cassava, beans, rice as well as different oilseeds and vegetables are the most important crops. Furthermore, Mozambique possesses considerable mineral resources, including iron ore, gold, bauxite, graphite, and the world's largest reserves of tantalite. On the industrial side, Mozambique has one of the world's largest aluminium smelters which also contributes to the external sector.

Usage of EBA Preferences

About 64% of EU imports from Mozambique make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is very high and currently stands at 92.9%.

Trade with the EU

Total trade with the EU summed up to €3,763 million in 2022. With a share of 16.1% of total trade, the EU is Mozambique's second most important trading partner and also ranks first as destination for Mozambique's export products.

Mozambique and the EU (2022)

Imports from Mozambique by product section

Imports from Mozambique over time (in € m)

MOZAMBIQUE AND THE EU’s GSP

Economic Impact

69%

The large majority of Mozambique's exports to the European market are eligible for EBA preferences.

92.90%

With a preference utilisation rate of 92.9%, Mozambique makes considerable use of EBA preferences.

Preference utilisation and export diversification

Mozambique's imports to the EU

Preference Utilisation vs. total eligible imports

Mozambique is among largest beneficiary under the EBA arrangement. Starting from a very low level, the country substantially increased its preference utilisation following the GSP reform in 2014. Two of the three major export groups, aluminium, tobacco, and fish products, benefit from the free access to the European market. Coal products as another important export product already benefit from zero third country duties.

The largest product sections under EBA

The graph shows that imports from Mozambique under the EBA remain highly concentrated on metals, which account for over 90% of preferential imports. Tobacco, fish, prepared food, and agricultural products are also imported using EBA preferences.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Mozambique is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Still, Mozambique upholds a very high level of ratification of fundamental conventions. It has ratified 14 out of 15 core conventions on the protection of human rights and labour standards. The country also shows strong commitment related to environmental protection and good governance and has ratified 12 conventions which focus on these two areas.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • International Covenant on Economic Social and Cultural Rights (1976)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Mozambique Bilateral Development Assistance

DG INTPA

Access all info about EU-Mozambique relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/mozambique_en

Opportunities in Mozambique

  • Investments in a number of projects related to the Nacala Logistics Corridor, which also foresees significant improvements to local transportation infrastructure
  • Great potential for extending the infrastructure for generating renewable energy, solar and wind in particular
  • High investments in port and road infrastructure

Contact points