Mozambique is a Dutch business

Development aid and promoting the foreign interests of Dutch businesses like Shell and Heineken are coupled in the world's fifth poorest nation. Critics aren't convinced it's a good deal.

Ilha Mozambique. Image by Stéphane Neckebrock via Flickr (CC).

In Mozambique, about half of the 29.7 million inhabitants are living under the official poverty line, many of them as impoverished farmers. After decades of above-average growth (compared to other sub-Saharan economies), about 80 percent of Mozambicans work in agriculture. It’s a sector which successive governments—from the Portuguese colonizers to the democratically elected Frelimo—have historically failed to develop, experts explain. Instead, they focused on developing profitable, capital-intensive “mega-projects” in the extractive sector, in which foreign investors were more than willing to invest. Mozambique exports coal, aluminium, and gas—soon, much more of the latter as foreign companies plan to develop a massive gas field discovered off the country’s coast in 2011.

The country is also no stranger to natural disasters—and global climate change is making the storms more frequent and severe. The latest hurricanes—Idai in March and Kenneth in April—flooded the port city of Beira and the northern province Cabo Delgado, killing hundreds. The lack of public funds to develop decent drainage systems and coastal protection around Beira were painfully visible in the pictures of the city in the aftermath of Idai.

Further Reading

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