Following Mozambique's independence from Portugal in 1975, Mozambique experienced years of civil conflict that concluded with a peace agreement in 1992. U.S. aid to Mozambique in the post-conflict period supported the peace and reconciliation process and today is closely aligned with current Mozambican government's development priorities. The U.S. and Mozambique share a commitment to economic development, improved living standards, and good governance for all Mozambicans.
U.S. Assistance to Mozambique
Since the end of the civil war in 1992 through today, Mozambique ranks among the least developed countries in the world. The U.S., as the largest bilateral donor to Mozambique, provides over $445 million in assistance annually, and plays a leading role in donor efforts to assist Mozambique. The U.S. seeks to strengthen democracy, transparency, and inclusive governance in Mozambique. Healthcare, education, poverty reduction, and job creation remain high priorities, as does food security. U.S. assistance includes programs such as the President’s Emergency Plan for AIDS Relief, the Basic Education Program, and the President’s Malaria Initiative.
Bilateral Economic Relations
The U.S. has provided substantial foreign direct investment in Mozambique. The principal U.S. investors in Mozambique are Mozambique Leaf Tobacco Limitada, and Exxon Mobil, although interest by other U.S. companies is on the rise. A Bilateral Investment Treaty between the two nations went into effect in March 2005. The U.S. and Mozambique signed a Trade and Investment Framework Agreement in 2005 and a Commercial Memorandum of Understanding in 2019.