Strengthening the Creative Industries for Development in ... - unctad

PART 1. GENERAL INTRODUCTION 5
access to seaports has given transport (rail, road and ports) and related services a central role in the
economy as illustrated by the Maputo, Beira and Nacala corridors.
The liberal economic reforms pursued by the government, the privatization of formerly state-owned
enterprises and a variety of incentives schemes have laid the ground for profitable investment in a
number of areas. Given the low level of diversification of the national industry, an industrial policy
strategy was approved in July 2007 providing the basis for the development of key economic sectors. 12
Agriculture (cotton, tobacco, sugar and cashews), fishing and aqua-culture (prawns) are the backbone
of the Mozambique economy. More than 75 per cent of the population is employed in the agricultural
sector. Nonetheless, services are now becoming a key sector for the economy.
In 2007, Mozambique was upgraded from the International Monetary Fund (IMF) Poverty Reduction
and Growth Facility (PRGF) programme and has since pursued a macroeconomic stabilization and
structural reform programme for the 2008–2010 period, supported by a three-year Policy Support
Instrument. 13
In 2008, total exports amounted to about $2.6 billion and are dominated by primary commodities. The
main exports are aluminium, electricity, tobacco, gas, prawns, sugar, cotton, cashew nuts and timber.
The main export markets are Belgium, South Africa, Spain, Portugal, the United Kingdom, Italy,
Holland, Zimbabwe, Swaziland, Japan, the United States, Brazil and India. 14 The main imports are
machinery, fuels, automobiles, cereals, electrical power and medicines. The main countries from
which Mozambique imports are South Africa, Australia, the United States, India, Portugal, China,
Germany, France, Japan, Spain, Italy and the United Kingdom. 15
International aid plays a pivotal role in Mozambique’s economy and in balancing its external accounts.
Official development assistance (ODA) finances more than half of the government expenditure. In
recent years approximately 19 donors have been providing direct budget support to Mozambique;
these are lead by the United Kingdom, the World Bank, the European Commission and Sweden. While
in the short term international donor support remains strong, at 14.2 per cent for 2008, this is
scheduled to decrease in the medium term, for example to 12 per cent by 2010. On the expenditure
side, the government plans to boost investment in the priority sectors of education, health, agriculture,
infrastructure and governance.
Mozambique has established itself in recent years as one of the leading foreign direct investment (FDI)
recipient countries in Southern and Eastern Africa. Leading investor's countries are South Africa, the
United Kingdom, Portugal and Japan. In terms of infrastructure, the rehabilitation of the internal
transport system has been target as a priority for the transport sector through roads and coastal
shipping.
A second Poverty Reduction Strategy Paper (PARPA) was introduced in 2007 with the fundamental
objectives of economic growth and poverty reduction. The incidence of poverty is gradually declining
from 54 per cent in 2003 to 45 per cent in 2009. The strategy places great emphasis on entrepreneurial
initiative and private sector growth as the driving force of economic and social development.
Tourism is increasingly being recognized as a valuable source of long-term growth and a key role for
Mozambique's development strategy. To a certain extent, it appears that investment in the sector has
matched these high expectations. Since 1995, investments projects worth over $1.8 billion (USD) have
been approved by the Investment Promotion Centre, being equal in value terms to 14 per cent of all
approved investments 16 . The creative industries have a close link with the tourism industry. The
creative industries are a sector with growing economic potential (see chapter 3), with art crafts, visual
12
Ministry of Industry and Trade (2007). Industrial Policy and Strategy,
13
IMF (2008b).
14
IPEX and INA.
15
IPEX and INA.
16
The contribution of tourism in Mozambique, present and future by Sam Jones (MPD) and Hanifa Ibrahimo
(MPD), discussion paper, January 2008.