Deepening Integration in SADC - Fes-botswana.org

Lack Lack of of Economic Economic Diversification: Diversification: Excluding mega projects,
Mozambique's traditional exports are essentially primary products not
manufactured, particularly fishing products and cash crops (cotton
and cashew nuts). The exports from mega projects have accounted
for about 50% of the total exports since 2003.
Lack Lack of of Economic Economic Infrastr Infrastructur
Infrastr uctur ucture: uctur e: In the last 5 years, major inroads
have been made in the road sector, resulting in the reduction of the
extension of roads classified as bad. Although there have been
improvements in the primary and secondary roads, the low quality of
tertiary roads is still a severe problem. Tertiary and roads are crucial for
the overall development of the country particularly rural areas, and
this has a strong potential for poverty reduction.
Currently, only less than 10% of the houses has electricity nationwade.
Most of the population rely on other sources of energy (wood,
coal and kerosene). From the private sector point of view, the poor
rural electricity coverage hinders the expansion of business activities
and pushes the cost of doing business higher.
Lack Lack Lack of of Finance: Finance: The high level of interest rates are mentioned as one
of the most serious constraints in access to credit. Although the rates
have been declining in real terms in the last years more has still to be
done in order to push the rates down and expand the volume of
credit to the private sector. The high levels of interest rates are the
result of a poor lending environment due to the lack of contract
enforcement legislation on one hand, and poor collateral capacity to
access credit on the other.
Envir Environmental Envir onmental Degradation: Degradation: Although we cannot classify it as severe,
there are some signs of rapid deforestation, which can have effects on
biodiversity, with direct impact on the poorest strata of the population.
One area of concern has been small-scale mining activities carried out
using rudimentary practices that lead to widespread pollution of river
waters. These environmentally unfriendly activities are particularly
rampant in the centre and north of the country.
Gender Gender Discrimination: Discrimination: No doubt the high disparities in the access to
services and income distribution for women is cited as one of the
causes of poverty. The last report on MDGs for Mozambique shows
that those disparities are still high, mainly in education, income and
employment opportunities.
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