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Swaziland vs. Mozambique

Economy

SwazilandMozambique
Economy - overview

A small, landlocked kingdom, Eswatini is bordered in the north, west and south by the Republic of South Africa and by Mozambique in the east. Eswatini depends on South Africa for a majority of its exports and imports. Eswatini's currency is pegged to the South African rand, effectively relinquishing Eswatini's monetary policy to South Africa. The government is dependent on customs duties from the Southern African Customs Union (SACU) for almost half of its revenue. Eswatini is a lower middle income country. As of 2017, more than one-quarter of the adult population was infected by HIV/AIDS; Eswatini has the world’s highest HIV prevalence rate, a financial strain and source of economic instability.

The manufacturing sector diversified in the 1980s and 1990s, but manufacturing has grown little in the last decade. Sugar and soft drink concentrate are the largest foreign exchange earners, although a drought in 2015-16 decreased sugar production and exports. Overgrazing, soil depletion, drought, and floods are persistent problems. Mining has declined in importance in recent years. Coal, gold, diamond, and quarry stone mines are small scale, and the only iron ore mine closed in 2014. With an estimated 28% unemployment rate, Eswatini's need to increase the number and size of small and medium enterprises and to attract foreign direct investment is acute.

Eswatini's national development strategy, which expires in 2022, prioritizes increases in infrastructure, agriculture production, and economic diversification, while aiming to reduce poverty and government spending. Eswatini's revenue from SACU receipts are likely to continue to decline as South Africa pushes for a new distribution scheme, making it harder for the government to maintain fiscal balance without introducing new sources of revenue.

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)
$11.6 billion (2017 est.)
$11.41 billion (2016 est.)
$11.26 billion (2015 est.)

note: data are in 2017 dollars

$37.09 billion (2017 est.)
$35.76 billion (2016 est.)
$34.46 billion (2015 est.)

note: data are in 2017 dollars

GDP - real growth rate
1.6% (2017 est.)
1.4% (2016 est.)
0.4% (2015 est.)
3.7% (2017 est.)
3.8% (2016 est.)
6.6% (2015 est.)
GDP - per capita (PPP)
$10,100 (2017 est.)
$10,100 (2016 est.)
$10,100 (2015 est.)

note: data are in 2017 dollars

$1,300 (2017 est.)
$1,200 (2016 est.)
$1,200 (2015 est.)

note: data are in 2017 dollars

GDP - composition by sector
agriculture: 6.5% (2017 est.)
industry: 45% (2017 est.)
services: 48.6% (2017 est.)
agriculture: 23.9% (2017 est.)
industry: 19.3% (2017 est.)
services: 56.8% (2017 est.)
Population below poverty line
63% (2010 est.)
46.1% (2015 est.)
Household income or consumption by percentage share
lowest 10%: 1.7%
highest 10%: 40.1% (2010 est.)
lowest 10%: 1.9%
highest 10%: 36.7% (2008)
Inflation rate (consumer prices)
6.2% (2017 est.)
7.8% (2016 est.)
15.3% (2017 est.)
19.2% (2016 est.)
Labor force
427,900 (2016 est.)
12.9 million (2017 est.)
Labor force - by occupation
agriculture: 10.7%
industry: 30.4%
services: 58.9% (2014 est.)
agriculture: 74.4%
industry: 3.9%
services: 21.7% (2015 est.)
Unemployment rate
28% (2014 est.)
28% (2013 est.)
24.5% (2017 est.)
25% (2016 est.)
Distribution of family income - Gini index
50.4 (2001)
45.6 (2008)
47.3 (2002)
Budget
revenues: 1.263 billion (2017 est.)
expenditures: 1.639 billion (2017 est.)
revenues: 3.356 billion (2017 est.)
expenditures: 4.054 billion (2017 est.)
Industries
soft drink concentrates, coal, forestry, sugar processing, textiles, and apparel
aluminum, petroleum products, chemicals (fertilizer, soap, paints), textiles, cement, glass, asbestos, tobacco, food, beverages
Industrial production growth rate
5.6% (2017 est.)
4.9% (2017 est.)
Agriculture - products
sugarcane, corn, cotton, citrus, pineapples, cattle, goats
cotton, cashew nuts, sugarcane, tea, cassava (manioc, tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry
Exports
$1.83 billion (2017 est.)
$1.577 billion (2016 est.)
$4.725 billion (2017 est.)
$3.328 billion (2016 est.)
Exports - commodities
soft drink concentrates, sugar, timber, cotton yarn, refrigerators, citrus, and canned fruit
aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity
Exports - partners
South Africa 94% (2017)
India 28.1%, Netherlands 24.4%, South Africa 16.7% (2017)
Imports
$1.451 billion (2017 est.)
$1.266 billion (2016 est.)
$5.223 billion (2017 est.)
$4.733 billion (2016 est.)
Imports - commodities
motor vehicles, machinery, transport equipment, foodstuffs, petroleum products, chemicals
machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles
Imports - partners
South Africa 81.6%, China 5.2% (2017)
South Africa 36.8%, China 7%, UAE 6.8%, India 6.2%, Portugal 4.4% (2017)
Debt - external
$526.3 million (31 December 2017 est.)
$468.9 million (31 December 2016 est.)
$10.91 billion (31 December 2017 est.)
$10.48 billion (31 December 2016 est.)
Exchange rates
emalangeni per US dollar -
14.44 (2017 est.)
14.6924 (2016 est.)
14.6924 (2015 est.)
12.7581 (2014 est.)
10.8469 (2013 est.)
meticais (MZM) per US dollar -
64.4 (2017 est.)
63.067 (2016 est.)
63.067 (2015 est.)
39.983 (2014 est.)
31.367 (2013 est.)
Fiscal year
1 April - 31 March
calendar year
Public debt
28.4% of GDP (2017 est.)
25.5% of GDP (2016 est.)
102.1% of GDP (2017 est.)
121.6% of GDP (2016 est.)
Reserves of foreign exchange and gold
$563.1 million (31 December 2017 est.)
$564.4 million (31 December 2016 est.)
$3.361 billion (31 December 2017 est.)
$2.081 billion (31 December 2016 est.)
Current Account Balance
$604 million (2017 est.)
$642 million (2016 est.)
-$2.824 billion (2017 est.)
-$4.28 billion (2016 est.)
GDP (official exchange rate)
$4.417 billion (2017 est.)
$12.59 billion (2017 est.)
Market value of publicly traded shares
$203.1 million (31 December 2007)
$199.9 million (31 December 2006)

NA

NA

Central bank discount rate
7.25% (31 December 2016)
6.5% (31 December 2015)
19% (4 November 2017)
23.25% (31 December 2016)
Commercial bank prime lending rate
10.75% (31 December 2017 est.)
10.25% (31 December 2016 est.)
27.86% (31 December 2017 est.)
21.18% (31 December 2016 est.)
Stock of domestic credit
$1.144 billion (31 December 2017 est.)
$891.3 million (31 December 2016 est.)
$4.337 billion (31 December 2017 est.)
$4.242 billion (31 December 2016 est.)
Stock of narrow money
$554.3 million (31 December 2017 est.)
$439 million (31 December 2016 est.)
$3.817 billion (31 December 2017 est.)
$3.411 billion (31 December 2016 est.)
Stock of broad money
$554.3 million (31 December 2017 est.)
$439 million (31 December 2016 est.)
$3.817 billion (31 December 2017 est.)
$3.411 billion (31 December 2016 est.)
Taxes and other revenues
28.6% (of GDP) (2017 est.)
26.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-8.5% (of GDP) (2017 est.)
-5.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24
total: 47.1%
male: 44.2%
female: 50.1% (2016)
total: 7.4%
male: 7.7%
female: 7.1% (2015 est.)
GDP - composition, by end use
household consumption: 64% (2017 est.)
government consumption: 21.3% (2017 est.)
investment in fixed capital: 13.4% (2017 est.)
investment in inventories: -0.1% (2017 est.)
exports of goods and services: 47.9% (2017 est.)
imports of goods and services: -46.3% (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 saving
25.4% of GDP (2017 est.)
29.7% of GDP (2016 est.)
23.3% of GDP (2015 est.)
16.8% of GDP (2017 est.)
-1.2% of GDP (2016 est.)
5% of GDP (2015 est.)

Source: CIA Factbook