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South Africa vs. Mozambique

Economy

South AfricaMozambique
Economy - overview

South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa's largest and among the top 20 in the world.

Economic growth has decelerated in recent years, slowing to an estimated 0.7% in 2017. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 27% of the workforce, and runs significantly higher among black youth. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability but has been plagued with accusations of mismanagement and corruption and faces an increasingly high debt burden.

South Africa's economic policy has focused on controlling inflation while empowering a broader economic base; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness, and frequent work stoppages due to strike action. The government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas, to increase job growth, and to provide university level-education at affordable prices. Political infighting among South Africa's ruling party and the volatility of the rand risks economic growth. International investors are concerned about the country's long-term economic stability; in late 2016, most major international credit ratings agencies downgraded South Africa's international debt to junk bond status.

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist policies, economic mismanagement, and a brutal civil war from 1977 to 1992 further impoverished the country. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, propelled the country's GDP, in purchasing power parity terms, from $4 billion in 1993 to about $37 billion in 2017. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, about half the population remains below the poverty line and subsistence agriculture continues to employ the vast majority of the country's work force.

Mozambique's once substantial foreign debt was reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives. However, in 2016, information surfaced revealing that the Mozambican Government was responsible for over $2 billion in government-backed loans secured between 2012-14 by state-owned defense and security companies without parliamentary approval or national budget inclusion; this prompted the IMF and international donors to halt direct budget support to the Government of Mozambique. An international audit was performed on Mozambique's debt in 2016-17, but debt restructuring and resumption of donor support have yet to occur.

Mozambique grew at an average annual rate of 6%-8% in the decade leading up to 2015, one of Africa's strongest performances, but the sizable external debt burden, donor withdrawal, elevated inflation, and currency depreciation contributed to slower growth in 2016-17.

Two major International consortiums, led by American companies ExxonMobil and Anadarko, are seeking approval to develop massive natural gas deposits off the coast of Cabo Delgado province, in what has the potential to become the largest infrastructure project in Africa. . The government predicts sales of liquefied natural gas from these projects could generate several billion dollars in revenues annually sometime after 2022.

GDP (purchasing power parity)$730.913 billion (2019 est.)

$729.799 billion (2018 est.)

$724.1 billion (2017 est.)

note: data are in 2010 dollars
$38.91 billion (2019 est.)

$38.042 billion (2018 est.)

$36.775 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate0.06% (2019 est.)

0.7% (2018 est.)

1.4% (2017 est.)
3.11% (2018 est.)

3.7% (2017 est.)

4.07% (2017 est.)
GDP - per capita (PPP)$12,482 (2019 est.)

$12,631 (2018 est.)

$12,703 (2017 est.)

note: data are in 2010 dollars
$1,281 (2019 est.)

$1,290 (2018 est.)

$1,284 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 2.8% (2017 est.)

industry: 29.7% (2017 est.)

services: 67.5% (2017 est.)
agriculture: 23.9% (2017 est.)

industry: 19.3% (2017 est.)

services: 56.8% (2017 est.)
Population below poverty line55.5% (2014 est.)46.1% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 1.2%

highest 10%: 51.3% (2011 est.)
lowest 10%: 1.9%

highest 10%: 36.7% (2008)
Inflation rate (consumer prices)4.1% (2019 est.)

4.6% (2018 est.)

5.2% (2017 est.)
2.7% (2019 est.)

3.9% (2018 est.)

15.4% (2017 est.)
Labor force14.687 million (2020 est.)12.9 million (2017 est.)
Labor force - by occupationagriculture: 4.6%

industry: 23.5%

services: 71.9% (2014 est.)
agriculture: 74.4%

industry: 3.9%

services: 21.7% (2015 est.)
Unemployment rate28.53% (2019 est.)

27.09% (2018 est.)
24.5% (2017 est.)

25% (2016 est.)
Distribution of family income - Gini index63 (2014 est.)

63.4 (2011 est.)
54 (2014 est.)

47.3 (2002)
Budgetrevenues: 92.86 billion (2017 est.)

expenditures: 108.3 billion (2017 est.)
revenues: 3.356 billion (2017 est.)

expenditures: 4.054 billion (2017 est.)
Industriesmining (world's largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repairaluminum, petroleum products, chemicals (fertilizer, soap, paints), textiles, cement, glass, asbestos, tobacco, food, beverages
Industrial production growth rate1.2% (2017 est.)4.9% (2017 est.)
Agriculture - productssugar cane, maize, milk, potatoes, grapes, poultry, oranges, wheat, soybeans, beefsugar cane, cassava, maize, milk, bananas, tomatoes, sweet potatoes, rice, sorghum, potatoes
Exports$123.864 billion (2019 est.)

$127.055 billion (2018 est.)

$123.79 billion (2017 est.)
$3.349 billion (2019 est.)

$3.874 billion (2018 est.)

$2.505 billion (2017 est.)
Exports - commoditiesgold, platinum, cars, iron products, coal, manganese, diamonds  (2019)coal, aluminum, natural gas, tobacco, electricity, gold, lumber (2019)
Exports - partnersChina 15%, United Kingdom 8%, Germany 7%, United States 6%, India 6% (2019)South Africa 16%, India 13%, China 12%, Italy 7%, United Arab Emirates 5%, Germany 5% (2019)
Imports$131.721 billion (2019 est.)

$132.365 billion (2018 est.)

$128.141 billion (2017 est.)
$7.371 billion (2019 est.)

$7.614 billion (2018 est.)

$5.076 billion (2017 est.)
Imports - commoditiescrude petroleum, refined petroleum, cars and vehicle parts, gold, broadcasting equipment (2019)refined petroleum, chromium, iron, bauxite, electricity (2019)
Imports - partnersChina 18%, Germany 11%, United States 6%, India 5% (2019)South Africa 31%, India 18%, China 17% (2019)
Debt - external$179.871 billion (2019 est.)

$173.714 billion (2018 est.)
$10.91 billion (31 December 2017 est.)

$10.48 billion (31 December 2016 est.)
Exchange ratesrand (ZAR) per US dollar -

14.9575 (2020 est.)

14.64 (2019 est.)

14.05125 (2018 est.)

12.7581 (2014 est.)

10.8469 (2013 est.)
meticais (MZM) per US dollar -

74.12 (2020 est.)

63.885 (2019 est.)

61.625 (2018 est.)

39.983 (2014 est.)

31.367 (2013 est.)
Fiscal year1 April - 31 Marchcalendar year
Public debt53% of GDP (2017 est.)

51.6% of GDP (2016 est.)
102.1% of GDP (2017 est.)

121.6% of GDP (2016 est.)
Reserves of foreign exchange and gold$50.72 billion (31 December 2017 est.)

$47.23 billion (31 December 2016 est.)
$3.361 billion (31 December 2017 est.)

$2.081 billion (31 December 2016 est.)
Current Account Balance-$10.626 billion (2019 est.)

-$13.31 billion (2018 est.)
-$3.025 billion (2019 est.)

-$4.499 billion (2018 est.)
GDP (official exchange rate)$350.032 billion (2019 est.)$14.964 billion (2019 est.)
Credit ratingsFitch rating: BB- (2020)

Moody's rating: Ba2 (2020)

Standard & Poors rating: BB- (2020)
Fitch rating: CCC (2019)

Moody's rating: Caa2 (2019)

Standard & Poors rating: CCC+ (2019)
Ease of Doing Business Index scoresOverall score: 67 (2020)

Starting a Business score: 81.2 (2020)

Trading score: 59.6 (2020)

Enforcement score: 56.9 (2020)
Overall score: 55 (2020)

Starting a Business score: 69.3 (2020)

Trading score: 73.8 (2020)

Enforcement score: 39.8 (2020)
Taxes and other revenues26.6% (of GDP) (2017 est.)26.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-4.4% (of GDP) (2017 est.)-5.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 57%

male: 53.2%

female: 61.7% (2019 est.)
total: 7.4%

male: 7.7%

female: 7.1% (2015 est.)
GDP - composition, by end usehousehold consumption: 59.4% (2017 est.)

government consumption: 20.9% (2017 est.)

investment in fixed capital: 18.7% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 29.8% (2017 est.)

imports of goods and services: -28.4% (2017 est.)
household consumption: 69.7% (2017 est.)

government consumption: 27.2% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: 13.9% (2017 est.)

exports of goods and services: 38.3% (2017 est.)

imports of goods and services: -70.6% (2017 est.)
Gross national saving14.9% of GDP (2019 est.)

14.9% of GDP (2018 est.)

16.1% of GDP (2017 est.)
17.8% of GDP (2019 est.)

12.9% of GDP (2018 est.)

12.5% of GDP (2017 est.)

Source: CIA Factbook