Data from the latest national poverty assessment report (by the Ministry of Planning and Development, 2010) indicates that 54.7 per cent of the population lives below the poverty line. After an impressive decrease of 15.3 per cent between 1997 and 2002 (from 69.4 per cent to 54.1 per cent), the most recent data show stagnation in poverty reduction at least in terms of consumption. Child mortality had dropped by 15 points over the five preceding years, from 153 to 138 deaths per 1,000 live births (a 9.8 per cent reduction), according to the Multiple Indicator Cluster Survey (MICS) conducted in 2008. Regarding nutrition, the study indicates that 44 per cent of children suffered from chronic malnutrition, compared to 48 per cent in 2003. Nonetheless, 18 per cent of children under five were still underweight for their age, according to the Survey. This reduction was accompanied by an improvement in some indicators such as the HDI: from 0.224 in 2000 to 0.284 in 2010. During that same period, the gross rate of schooling in the primary, secondary and tertiary sectors combined went from 37.3 per cent to 54.8 per cent. Finally, there was also a modest average gain of 0.8 per cent in longevity, measured as life expectancy at birth.

The main risks affecting the poorest households in urban and rural areas are hunger, illness or death of a family member, unemployment and harvest loss. Although poverty has shown higher reduction rates in rural areas, the poorest households continue to be found disproportionately in agriculture, being more vulnerable to climatic shocks, such as seasonal droughts and floods, and to seasonal variations in income. More recent data from the 2006 Survey on Poverty and Vulnerability indicate continued improvements in access to public services, particularly in health and education.

Another major threat that Mozambique is facing is HIV and AIDS. In 2010, the national HIV prevalence rate was 11.5 per cent (National Statistics Institute/ Ministry of Health).

With a population estimated at over 22 million, Mozambique is unanimously seen as a country with potential, but also with several challenges. At the time when the civil war ended, in 1992, Mozambique was one of the poorest countries in the world, with destroyed infrastructure, a fragile economy, lack of qualified human resources and great fragility. In the decades that followed the first free elections in 1994, the country came to be highlighted as an example of good economic performance. It achieved substantial improvements in some indicators such as the human development index (from 0.195 in 1990, to 0.224 in 2000, to 0.284 in 2010) and a significant reduction of absolute poverty (69 per cent in 1997 to 54 per cent in 2003).

The recent National Poverty Assessment report shows that no improvement was achieved in eradicating poverty between 2002 and 2008. The rate of absolute poverty remains high at 54.7 per cent, compared to 54.1 per cent in 2002; social inequalities have increased; and rural and informal work still has an extremely important role in the economy.

Economic growth in Mozambique has lasted for over 15 years. Between 2001 and 2006, the gross domestic product (GDP) grew an average of 8.7 per cent per year. This growth has been based on private investment in physical capital and high levels of public spending. Presently, a big expectation for economic growth lies in the development of the extractive industry, with several major investments in the pipeline and some that have already started being carried out. As a consequence, one of the most important debates in government and in Mozambican society is on how the country should deal with opportunities. Finding the best balance between promoting economic growth and creating revenues from this growth is one of the challenges.♦