Following three years of slow economic growth, driven by a combination of the lingering impacts of Mozambique’s 2016 hidden debt crisis and the devastating cyclones in 2019, 2020 was supposed to be Mozambique’s breakout year. While the economy registered its first contraction in 2020 in nearly three decades (due to COVID-19), growth is expected to rebound over the medium term, reaching about 4 percent by 2022.
Despite some challenges, Mozambique has plenty to offer Dutch entrepreneurs. The EU signed an Economic Partnership Agreement (EPA) on 10 June 2016 with the Southern African Development Community EPA Group comprising Mozambique, Botswana, Lesotho, Namibia, South Africa and Swaziland. Under this agreement, the EU guarantees 100% free access to its market. In turn, Mozambique has partially opened its market to certain products imported from the EU; i.e. reduction of customs duties varying from 10% to 2%.