Description:
In the last 10 years, Mozambique's
economy has grown steadily at an impressive rate of 7.7
percent per year, driven by the service sector, light
industry, and agriculture. This pace is expected to continue
or even increase with the massive influx of already-planned
investment on the order of $15-20 billion. Mozambique's
infrastructure is well developed in some sectors, including
its east-west transport infrastructure, power grid, and
water and sanitation networks. But the nation still faces
critical challenges in these and other areas, including
developing north-south transport connections, properly
managing the water system, and expanding hydroelectric
generation to meet potential. Mozambique spent about $664
million per year on infrastructure during the late 2000s,
with as much as $204 million lost annually to
inefficiencies. Comparing spending needs with existing
spending and potential efficiency gains leaves an annual
funding gap of $822 million per year. Mozambique could
reduce inefficiency losses by positioning itself as a key
power exporter. The country could reach infrastructure
targets in 20 years through a combination of increased
finance, improved efficiency, and cost-reducing innovations.