Almost five centuries as a Portuguese colony came to a close with independence in 1975.

Large-scale emigration by whites, economic dependence on South Africa, a severe drought, and a prolonged civil war hindered the country's development.

The ruling Front for the Liberation of Mozambique (FRELIMO) party formally abandoned Marxism in 1989, and a new constitution the following year provided for multiparty elections and a free market economy.

A UN-negotiated peace agreement between FRELIMO and rebel Mozambique National Resistance (RENAMO) forces ended the fighting in 1992.

In December 2004, Mozambique underwent a delicate transition as Joaquim Chissano stepped down after 18 years in office.

His newly elected successor, Armando Emilio Guebuza, has promised to continue the sound economic policies that have encouraged foreign investment.

Source: CIA World Fact Book

Population: 20,905,585 note: estimates for this country explicitly take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality and death rates, lower population and growth rates, and changes in the distribution of population by age and sex than would otherwise be expected; the 1997 Mozambican census reported a population of 16,099,246 (July 2007 est.)

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Age structure: 0-14 years: 44.7% (male 4,692,126/female 4,647,960) 15-64 years: 52.5% (male 5,345,618/female 5,633,511) 65 years and over: 2.8% (male 244,886/female 341,484) (2007 est.)

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Median age: total: 17.4 years male: 16.9 years female: 17.8 years (2007 est.)

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Population growth rate: 1.803% (2007 est.)

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Birth rate: 38.54 births/1,000 population (2007 est.)

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Death rate: 20.51 deaths/1,000 population (2007 est.)

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Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.02 male(s)/female under 15 years: 1.01 male(s)/female 15-64 years: 0.949 male(s)/female 65 years and over: 0.717 male(s)/female total population: 0.968 male(s)/female (2007 est.)

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Infant mortality rate: total: 109.93 deaths/1,000 live births male: 112.81 deaths/1,000 live births female: 106.99 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 40.9 years male: 41.4 years female: 40.4 years (2007 est.)

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Total fertility rate: 5.29 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 12.2% (2003 est.)

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HIV/AIDS - people living with HIV/AIDS: 1.3 million (2003 est.)

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HIV/AIDS - deaths: 110,000 (2003 est.)

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Major infectious diseases: degree of risk: very high food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever vectorborne diseases: malaria and plague are high risks in some locations water contact disease: schistosomiasis (2007)

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Nationality: noun: Mozambican(s) adjective: Mozambican

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Ethnic groups: African 99.66% (Makhuwa, Tsonga, Lomwe, Sena, and others), Europeans 0.06%, Euro-Africans 0.2%, Indians 0.08%

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Religions: Catholic 23.8%, Muslim 17.8%, Zionist Christian 17.5%, other 17.8%, none 23.1% (1997 census)

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Languages: Emakhuwa 26.1%, Xichangana 11.3%, Portuguese 8.8% (official; spoken by 27% of population as a second language), Elomwe 7.6%, Cisena 6.8%, Echuwabo 5.8%, other Mozambican languages 32%, other foreign languages 0.3%, unspecified 1.3% (1997 census)

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Literacy: definition: age 15 and over can read and write total population: 47.8% male: 63.5% female: 32.7% (2003 est.)

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. 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, have led to dramatic improvements in the country's growth rate. Inflation was reduced to single digits during the late 1990s although it returned to double digits in 2000-06. 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, Mozambique remains dependent upon foreign assistance for much of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country's largest foreign investment project to date, has increased export earnings. In late 2005, and after years of negotiations, the government signed an agreement to gain Portugal's majority share of the Cahora Bassa Hydroelectricity (HCB) company, a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More power is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level.

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GDP (purchasing power parity): $29.17 billion (2006 est.)

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GDP (official exchange rate): $6.323 billion (2006 est.)

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GDP - real growth rate: 7.9% (2006 est.)

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GDP - per capita (PPP): $1,500 (2006 est.)

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GDP - composition by sector: agriculture: 21.1% industry: 30.9% services: 48% (2006 est.)

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Labor force: 9.4 million (2006 est.)

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Labor force - by occupation: agriculture: 81% industry: 6% services: 13% (1997 est.)

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Unemployment rate: 21% (1997 est.)

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Population below poverty line: 70% (2001 est.)

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Household income or consumption by percentage share: lowest 10%: 2.5% highest 10%: 31.7% (1997)

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Distribution of family income - Gini index: 39.6 (1996-97)

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Inflation rate (consumer prices): 12.8% (2006 est.)

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Investment (gross fixed): 21.5% of GDP (2006 est.)

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Budget: revenues: $1.391 billion expenditures: $1.822 billion (2006 est.)

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Public debt: 23.2% of GDP (2006 est.)

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Agriculture - products: cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry

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Industries: food, beverages, chemicals (fertilizer, soap, paints), aluminum, petroleum products, textiles, cement, glass, asbestos, tobacco

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Industrial production growth rate: 3.4% (2000)

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Electricity - production: 11.58 billion kWh (2004)

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Electricity - consumption: 9.592 billion kWh (2004)

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Electricity - exports: 8.75 billion kWh (2004)

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Electricity - imports: 7.576 billion kWh (2004)

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Oil - production: 0 bbl/day (2004 est.)

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Oil - consumption: 11,500 bbl/day (2004 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 0 bbl (1 January 2005)

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Natural gas - production: 80 million cu m (2004 est.)

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Natural gas - consumption: 80 million cu m (2004 est.)

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Natural gas - exports: 0 cu m (2004 est.)

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Natural gas - imports: 0 cu m (2004 est.)

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Natural gas - proved reserves: 127.4 billion cu m (1 January 2005 est.)

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Current account balance: -$444.4 million (2006 est.)

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Exports: $2.429 billion f.o.b. (2006 est.)

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Exports - commodities: aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity

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Exports - partners: Netherlands 59.7%, South Africa 15.2%, Zimbabwe 3.2% (2006)

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Imports: $2.815 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles

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Imports - partners: South Africa 36.3%, Netherlands 15.6%, Portugal 3.3% (2006)

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Reserves of foreign exchange and gold: $1.353 billion (2006 est.)

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Debt - external: $2.392 billion (2006 est.)

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Economic aid - recipient: $632.8 million (2001)

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Currency (code): metical (MZM)

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Exchange rates: meticais per US dollar - 25.4 (2006), 23,061 (2005), 22,581 (2004), 23,782 (2003), 23,678 (2002) note: in 2006 Mozambique revalued its currency, with 1000 old meticais equal to 1 new meticais

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Fiscal year: calendar year