Ratings downgrade for Mozambique threatens its recent significant growth
MOZAMBIQUE has routinely been cited as a prime case in example in the "Africa rising" narrative, much to SA’s reputational loss. Over the past two decades Mozambique has experienced significant economic growth at a pace matching that of other rapidly growing economic powerhouses such as India and China.Mozambique has been able to grow at plus 7% consistently, a proud anomaly among its neighbours.Like much of the African continent the drop in commodity prices has affected the country, as commodity extraction is a key economic driver. Mozambique, unlike other countries, however, is still forecasted to grow at 8.1% in 2016 according to African Economic Outlook.The recent resurgent tension between the government and Renamo militia has escalated in the Tete region of the country, an unfortunate source of potentially destabilising growth. The region is home to Mozambique’s coal deposits and the Nacala logistics corridor. The corridor is responsible for linking Malawi and Zambia to the Ind...
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