U.S. Relations With Mozambique

Bureau of African Affairs
Fact Sheet
August 10, 2018


More information about Mozambique is available on the Mozambique Page and from other Department of State publications and other sources listed at the end of this fact sheet.

U.S.-MOZAMBIQUE RELATIONS

Mozambique's independence from Portugal in 1975 was followed by years of a civil conflict that concluded 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 development priorities. The country has had one ruling political party since 1975. The opposition party never fully integrated into Mozambican politics or disarmed, and historical grievances have resurfaced in periodic flare-ups of violence since the 1992 accords. The United States participated in the recent peace process as a member of the International Contact Group and is prepared to assist with implementation of the peace agreement. The United States and Mozambique share a commitment to economic development, improved living standards, and good governance for all Mozambicans.

U.S. Assistance to Mozambique

At the end of the civil war in 1992, Mozambique ranked among the least developed countries in the world and continues to be so today. The United States is the largest bilateral donor to the country, providing over $400 million in assistance annually, and plays a leading role in donor efforts to assist Mozambique. The United States seeks to strengthen democracy, transparency, and inclusive governance in Mozambique that expands opportunity for those most at risk. Healthcare, education, poverty reduction and job creation remain high priorities, as does food security. Our 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

In 2016, Mozambique’s economy, which had been growing at 8% annually, entered into a crisis after the discovery of $2 billion in questionable government-backed loans to three state-owned companies. Donors responded by freezing over $250 million in direct budget support and the IMF cancelled its financial program. Coupled with a drop in commodity prices, growth rates fell to 3.5%, the metical devalued over 40% against the U.S. dollar, and inflation rates climbed over 25%. The Government of Mozambique has since contracted an international, independent audit into the $2 billion debt to restore donor and investor confidence.

Substantial foreign direct investment in Mozambique has come from the United States, with the potential for much more in the future. The three principal U.S. investors in Mozambique are Anadarko Petroleum, Mozambique Leaf Tobacco Limitada, and Exxon Mobil, although interest by other U.S. companies is on the rise. ExxonMobil became one of the largest investors in Mozambique after signing a $2.8 billion deal to purchase a large stake in Italian oil and gas company Eni’s gas development project. Long term, Anadarko and ExxonMobil’s natural gas exploration and liquefied natural gas production has the potential to triple Mozambique’s GDP in the next decade and to attract other international investors. A Bilateral Investment Treaty (BIT) between the two nations went into effect in March 2005. The U.S. and Mozambique signed a Trade and Investment Framework Agreement (TIFA) in 2005.

Mozambique's Membership in International Organizations

Mozambique's main foreign policy goal is the maintenance of good relations with its neighbors. Mozambique belongs to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

Bilateral Representation

The U.S. Ambassador to Mozambique is H. Dean Pittman; other principal embassy officials are listed in the Department's Key Officers List.

Mozambique maintains an embassy in the United States at 1525 New Hampshire Avenue, NW, Washington, DC 20036; tel: 202-293-7146; fax: 202-835-0245.

More information about Mozambique is available from the Department of State and other sources, some of which are listed here:

Department of State Mozambique Page
Department of State Key Officers List
CIA World Factbook Mozambique Page
USAID Mozambique Page
History of U.S. Relations With Mozambique
U.S. Embassy
Human Rights Reports
International Religious Freedom Reports
Trafficking in Persons Reports
Narcotics Control Reports
Office of the U.S. Trade Representative Country Page
U.S. Census Bureau Foreign Trade Statistics
Export.gov International Offices Page
Country Commercial Guide
Millennium Challenge Corporation: Mozambique
Library of Congress Country Studies
Travel Information