Mozambique. Country Overview Politics. Economy

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1 Mozambique Country Overview Politics Mozambique is categorized as both a multiparty parliamentary democracy 1 and a presidential republic. Current President Filipe Jacinto Nyusi came to power in The voting process was judged to be generally orderly by national and international observers. However, the observers highlighted a lack of transparency during the tabulation of the results and some expressed suspicion concerning ballot box stuffing and invalid votes. 3 Opposition party Mozambique National Resistance (RENAMO) claimed the election results were fraudulent. 4 The rebel group turned political party has maintained a low-level insurgency since 2012 despite signing a peace agreement with ruling party Front for the Liberation of Mozambique (Frelimo) in Economy Mozambique is classified by the World Bank as a lower income economy. 6 The country s economy expanded substantially over the past few decades. However, recently the GDP has been dropping due, according to the World Bank, to undisclosed borrowing. GDP growth dropped to 3.3 percent in 2016 from 6.6 percent in 2015, and is projected to rise only slightly to 4.8 percent in There has been a growth slowdown in many sectors in the country and negative growth in the hotel, restaurant, and utilities sectors. Foreign direct investment has declined substantially as well. 7 Threats to Mozambique s economy include severe droughts, cyclones, and floods. 8 The U.S. cited inflation, corruption, poor infrastructure, national account deficits and debts, and drought conditions as factors that discourage foreign investment. However, the country does have substantial underdeveloped natural resource extraction and large infrastructure potential. 9 An international independent audit has been requested by foreign donors and the IMF to restore confidence in the country s government and economy. 10 1

2 Social/Human Development The vast majority of Mozambique s citizens are African (99.66 percent), including Makhuwa, Tsonga, Lomwe, Sena, and others. Less than one percent of the population is European, Euro-African, or Indian. Mozambique has a high population growth rate; however, the country also has a high mortality rate and is one of the worst countries in the world in terms of HIV/AIDS prevalence and death. 11 The poverty headcount ratio at national poverty lines has stayed relatively consistent at 54.1 percent in 2000 and 54.7 percent in However, the poverty headcount ratio at USD 1.90 per day (2011 PPP) has decreased from 80.4 in 2000 to 68.7 in is the latest data the World Bank has published poverty headcount ratios in Mozambique. 12 Mozambique s Human Development Index score for 2015 was 0.418, placing it in the low human development category and ranking the country 181 out of 188 countries. 13 U.S. Department of State TIP Report Summary (2017) U.S. Department of State TIP Ranking: Tier 2 Watch List According to the Trafficking in Persons Report, trafficking and trafficking risk was noted in potentially exported supply chains including mining and agriculture. Children are at risk for sex trafficking related to extractive industries. Read the full TIP Report at: Migrant and Other Vulnerable Populations Mozambique has a negative net migration rate was the last year that the country had a substantial positive net migration. 14 The largest source countries for migrants were Malawi and Zimbabwe. 15 There were an estimated 20,447 persons of concern in Mozambique at the end of 2015 of whom about 5,622 were refugees and 14,825 were asylum-seekers. 16 According to the U.S. Department of State, the National Institute for Disaster Management (INGC) reported 2,372 IDPs in camps due to drought and resulting food insecurity and 500 families in IDP camps since January 2014 due to fighting between government forces and RENAMO. 17 2

3 The most common destination country for migrants from Mozambique is South Africa, followed by Zimbabwe, Portugal, and Malawi. 18 3

4 Exports and Trade Mozambique s top exports in 2016 include mineral fuels, aluminum, chemical products, tobacco and ores (primarily titanium). 19 4

5 The top importers of all goods from Mozambique include South Africa, China, India, Italy, and the Netherlands. 20 5

6 Trafficking in Persons Risk Factors Analysis Legal/Policy Risk Factors Level of Legal Protection for Civil Liberties and Workers Rights Freedom of Association The law provides for the rights of workers to form and organize unions, with exceptions for members of the defense and security services, tax administration workers, prison workers, the fire brigade, judges, prosecutors, and the staff of the President s Office. However, the union must be approved by the government and the government can take up to 45 days to register a union. Workers have the right to 6

7 collectively bargain as well, but the U.S. Department of State has reported that in practice less than five percent of workers are covered by collective agreements. The law allows workers to strike but only after they have engaged in lengthy conciliation, mediation, and arbitration efforts. Essential sectors must maintain a minimum level of services during a strike action and some are prohibited from striking altogether. 21 The International Trade Union Confederation (ITUC) considers the list of essential services to be excessively long. 22 Working Conditions The law sets the minimum wage at MZM 3,183 (USD 44) per month. Workers often receive benefits, like transportation and food, in addition to monetary payment. The legal workweek is 40 hours, but can be extended to 48 hours without overtime pay. Over 48 hours a week is considered overtime and overtime is restricted to two hours per day and 100 hours per year. One hour of rest per day is required by the law. Workers have the right to remove themselves from hazardous situations. According to the U.S. Department of State, the informal economy, which comprised approximately 95 percent of the workforce, is not explicitly exempt from the laws. 23 Discrimination The law prohibits discrimination based on race, color, sex, religion, political opinion, national origin, citizenship, social origin, disability, sexual orientation, gender identity, age, language, and HIV-status and the status of other communicable diseases. According to the U.S. Department of State, the government has effectively enforced the law and penalties are enough to act as deterrents. 24 Forced Labor The law prohibits forced labor, but the U.S. Department of State reports that the government has not met the minimum standards for the elimination of trafficking. It is, however, reportedly making significant efforts to do so. 25 Child Labor The law sets the legal minimum working age at 18. However, children between the ages of 15 and 17 can work if they obtain a permit from the Ministry of Labor and children between 12 and 14 years old can work under certain circumstances and if authorized by the Ministries of Labor, Health, and Education. Children under 18 years old cannot work over seven hours per day or 38 hours per week. Children under 18 years old are also prohibited from working in hazardous conditions, but the 7

8 government does not have an official list of prohibited tasks or occupations. According to the U.S. Department of State, the enforcement of child labor law in the formal sector has been inadequate and completely absent in the informal sector. Education is compulsory for primary school (grades one to seven). 26 Civil Society Organizations According to the U.S. Department of State, civil society in Mozambique has reported restricted freedom of speech and press due to intimidation tactics from the government. It has been reported that government intelligence agents have allegedly monitored s and phone calls and even searched the offices of civil society activists without warrants. 27 According to Freedom House, nongovernmental organizations (NGOs) are able to operate freely but legal registration can be a challenge due to the government s bureaucratic requirements. 28 Ratification of ILO Conventions Related to Human Trafficking or Rights of Workers and Migrants 29 8

9 Political Risk Factors Political Instability or Conflict A peace agreement in 1992 between FRELIMO and RENAMO was designed to end the 16-year-old civil war between the two groups. However, the conflict continued and, since October 2015, approximately 10,000 people have fled to Malawi and Zimbabwe because of the violence. Many people within the country are in IDP camps as well. 30 FRELIMO maintained power in the most recent elections; however, RENAMO claim that the results were fraudulent and are attempting to govern the six provinces in which it claims it received a majority vote. 31 RENAMO fighters raided hospitals and health clinics in early 2016, destroying equipment and looting supplies. 32 Amnesty International added that RENAMO members executed attacks on highways and police stations as well. 33 FRELIMO has carried out government sanctioned violence against RENAMO members as well (see State Persecution). Mozambique scores an 89.0 in the 2017 Fragile States Index, placing it in the Alert Category, a slight improvement from the country s score of 87.8 in Neighboring countries Tanzania, Malawi, Zambia, and Zimbabwe are also in the Alert Category with scores ranging from 80.3 to South Africa, Mozambique s southern-most neighbor, is in the Warning Category with a score of Mozambique s percentile rank for political stability and absence of violence/terrorism was 26 on the Work Bank s 2015 Worldwide Governance Indicators report. 35 Level of Crime and Violence The World Economic Forum Global Competitiveness Report ranked Mozambique at 118/138 and 121/138 for business costs of crime and violence and organized crime respectively. 36 The United Nations Office on Drugs and Crime (UNODC) reported a homicide rate of 12.4 homicides per 100,000 people in The rush atmosphere around the ruby sector in Mozambique has reportedly led to armed robberies and violence among speculators. 38 Organized criminal groups act as de facto security groups in some mining regions, intimidating artisanal miners with violence and operating with impunity. Miners report that the guards have seized money, cell phones and other possessions and on occasion, perpetrated violence including shooting. 39 State Persecution According to Human Rights Watch, government security forces allegedly executed people suspected of being connected to RENAMO. 40 Amnesty International added that there was evidence that government 9

10 security forces have also engaged in torture, arbitrary detentions, and destruction of property and did so with impunity. 41 Journalists, human rights defenders, and others that expressed dissenting or critical views of the government were subject to intimidation and violence in 2016 and 2017, according to Amnesty International. 42 Level of Corruption The Transparency International Corruption Perception Index scores Mozambique as a 27 out of 100, where a 0 signals Highly Corrupt and a 100 signals Very Clean. Mozambique is ranked 142 out of 176 on that index. 43 According to the U.S. Department of State, corruption is a problem at all levels of the government and among the police forces who regularly extort bribes. 44 According to Freedom House, police officers and judicial authorities often fail to investigate cases of corruption and impunity is a serious issue in the country. 45 The Center for Public Integrity (CIP) reports that the country has lost MZM 278 (USD 5.3 billion) over the past ten years due to high-level government corruption. 46 Socio-Economic Risk Factors Level of National Economic Development Mozambique is scored in the low human development category, according to the UN Human Development Index, with a rank of 181 out of 188 countries and a score of Mozambique s human development score is lower than average for Sub-Saharan African countries. 47 Level and Extent of Poverty Mozambique has a high level of poverty, with 70.2 percent of the population determined to be living in multi-dimensional poverty according to the UN. When adjusted for inequality, the Human Development Index score falls to from Mozambique s gross national income (GNI) per capita has steadily increased from USD 180 in 1990, USD 280 in 2000, USD 460 in 2010, to USD 590 in Degree of Gender Inequality The UNDP Gender Inequality Index scores Mozambique low for gender equality, with a score of in This score is, however, is a slight improvement from previous years. 50 The World Economic Forum s 2016 Global Gender Gap Report ranks Mozambique 21 out of

11 The law does not explicitly prohibit gender-based discrimination in hiring and it does not require equal pay for equal work. 52 According to the World Economic Forum, the wage gap for similar work is 37 percent. Eighty-four percent of women participate in the labor force compared to 75 percent of men. 53 However, the majority of women are employed in the informal sector, specifically subsistence agriculture, and as casual laborers. 54 Men and women have similar educational enrollment rates with 18 percent of both men and women enrolled in secondary education and 5 percent of women and 7 percent of men enrolled in tertiary education. 55 The law grants men and women equal legal status. However, under customary law, women do not have rights to inherit land and the U.S. Department of State has reported that the government has failed to enforce national land ownership laws. 56 Domestic violence, rape, and sexual harassment are prohibited by Mozambican law. In practice, the Organization for Economic Co-operation and Development (OECD) reports that the government s response to domestic violence has been effective. However, intra-family rape is reportedly common and the government has been less effective in combatting sexual violence in general. The OECD supplied no information on the frequency of sexual harassment and the government s response. 57 Landlessness and Dispossession Droughts and subsequent food insecurity has displaced 2,372 persons, according to INGC data from August In addition, since January 2014, 500 families have fled their homes for IDP camps due to clashes between government forces and RENAMO. 58 The International Organization for Migration (IOM) reported in 2015 that they were in the processing of assisting 10,000 families displaced by floods with housing. 59 People living around gem stone mining regions report being forced off their land, sometimes by violent means. 60 Environmental Factors Mozambique experiences severe droughts, cyclones, and floods. 61 According to INGC data in August 2016, droughts and subsequent food insecurity have displaced 2,372 persons. 62 In 2015, the IOM reported that 10,000 families were displaced by floods

12 Documented Trafficking in Persons Risk Factors in Key Commodity Supply Chains Tobacco Tobacco Overview Small scale farming operations make up the vast majority of tobacco cultivation in Mozambique, and small-scale farmers tend to as much as 98 percent of tobacco grown in the country. More than 129,755 farmers rely on tobacco farming for a majority of their income, and there are 49,450 farmers associated with the Mozambique Leaf Tobacco (MLT) company, the largest tobacco growing company in the country. Mozambican tobacco production has steadily risen in the past two decades. 64 Documented Trafficking in Persons Risk Factors in Tobacco The U.S. Department of Labor reports that tobacco is produced with forced labor and child labor in Malawi, and with child labor in Mozambique. 65 Tobacco along with cotton represents a significant crop in terms of hazardous child labor. 66 Updated information on child labor in tobacco production is hard to come by, but a 2002 ILO IPEC study found that children began working in tobacco farming as young as 4-9 years old. The study notes that children were more likely than adults to be compensated in forms other than cash and that of children who worked in tobacco, 90 percent reported that it caused them to miss school. 67 The government provides tobacco companies exclusive buying rights in certain areas via a concessionary system. 68 This debt and resulting lack of cash may increase their reliance of low-cost labor, such as family members. Once a loan has been taken, crop failures can be financially disastrous, as all risk under these contracts is typically the burden of the producer alone. 69 Some analysis has noted that as a result of this exploitive contracting system, many farmers may be growing tobacco involuntarily, unable to break free of the cycle of debt. 70 Analysis has noted that for some producers, high levels of debt may make it difficult to shift out of tobacco production. 71 Gemstones Gemstones Overview In 2009, one of the largest ruby deposits in the world estimated to hold the equivalent of 40 percent of the world s ruby supply was discovered in the northern region of the country. 72 Artisanal mining and illegal gem stone dealers are prevalent in the areas surrounding the mine, and there are widespread reports of violence being used to protect the ruby concession

13 Documented Trafficking in Persons Risk Factors in Gemstones Children are reportedly used in sapphire mining in Mozambique as their stature allows them to fit into small pits. 74 Miners work illegally around the edges of commercial ruby concessions. In some cases, this has led to violent clashes between these miners and both government and private security forces. At least 19 people have reportedly been killed by security forces since In 2016, Foreign Policy documented the presence of an organized criminal group known as Nacatanas, which is the Portuguese word for machete, acting as de facto security guards. The Nacatanas operate on the commercial concession and intimidate local artisanal miners with violence; community members have reported that they operate with impunity. Miners reported that the guards have seized money, cell phones and other possessions and on occasion, perpetrated violence including shooting. 76 The presence of intimidating security forces has also led to deaths when miners, fearing for their lives should they exit pits, have been crushed or buried alive in mining pits. 77 The rush atmosphere around the ruby sector in Mozambique has reportedly led to armed robberies and violence among speculators. 78 In 2016, over 300 homes were burned down in the region around ruby mining concessions in Mozambique and local people were forced off of their land. 79 This report was funded by a grant from the United States Department of State. The opinions, findings and conclusions stated herein are those of the authors and do not necessarily reflect those of the United States Department of State. 13

14 Endnotes 1 U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, Central Intelligence Agency. The World Factbook: Mozambique. May U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, World Bank. Mozambique: Overview. April Central Intelligence Agency. The World Factbook: Mozambique. May World Bank. Mozambique World Bank. Mozambique: Overview. April Central Intelligence Agency. The World Factbook: Mozambique. May U.S. Department of State. Investment Climate Statements for 2016: Mozambique U.S. Department of State, Bureau of African Affairs. U.S. Relations with Mozambique. October 27, Central Intelligence Agency. The World Factbook: Mozambique. May World Bank. Country Profile: Mozambique. tbar=y&dd=y&inf=n&zm=n&country=moz 13 United Nations Development Programme. Human Development Report 2016: Mozambique World Bank. Net Migration: Mozambique United Nations. Department of Economic and Social Affairs. International Migrant Stock 2015: By Destination and Origin United Nations High Commissioner for Refugees (UNHCR). UNHCR Statistics: The World in Numbers U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, United Nations. Department of Economic and Social Affairs. International Migrant Stock 2015: By Destination and Origin International Trade Centre. Bilateral trade between Mauritania and World in International Trade Centre. Lit of importing markets for the product exported by Mauritania in U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, International Trade Union Confederation (ITUC). Survey of Violations of Trade Union Rights

15 22 International Trade Union Confederation (ITUC). Survey of Violations of Trade Union Rights U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, U.S. Department of State. Trafficking in Persons Report. Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, Freedom House. Freedom in the World 2016: Mozambique International Labour Organization (ILO). Ratifications for Mozambique Human Rights Watch. Mozambique: Events of Amnesty International. Mozambique 2016/ Human Rights Watch. Mozambique: Events of Amnesty International. Mozambique 2016/ The Fund for Peace. Fragile States Index 2017: Mozambique factionalization-and-group-grievance-fuel-rise-in-instability/ 35 World Bank. Worldwide Governance Indicators World Economic Forum. Global Competitiveness Index: Mozambique United Nations Office on Drugs and Crime. Global Homicide Study Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Human Rights Watch. Mozambique: Events of Amnesty International. Mozambique 2016/ Amnesty International. Mozambique 2016/ Transparency International. Corruption Perceptions Index 2016: Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, Freedom House. Freedom in the World 2016: Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, United Nations Development Programme. Human Development Reports 2016: Mozambique

16 48 United Nations Development Programme. Human Development Reports: Mozambique. March World Bank. Country Profile: Mozambique tbar=y&dd=y&inf=n&zm=n&country=moz 50 United Nations Development Programme. Human Development Reports: Gender Development Index (GDI) World Economic Forum. Global Gender Gap Report 2016: Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, World Economic Forum. Global Gender Gap Report 2016: Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, World Economic Forum. Global Gender Gap Report 2016: Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, Organization for Economic Co-operation and Development (OECD) Development Center. Social Institutions & Gender Index (SIGI): Mozambique U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, International Organization for Migration (IOM). Mozambique. May Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Central Intelligence Agency. The World Factbook: Mozambique. May U.S Department of State Country Reports on Human Rights Practices: Mozambique. March 3, International Organization for Migration (IOM). Mozambique. May U.S. Department of Labor. List of Goods Produced with Forced Labor and Child Labor Human Rights Watch. Teens of the Tobacco Fields: Child Labor in United States Tobacco Farming. December 9, IPEC (2002): Report of Baseline Survey on Child Labour in Commercial Agriculture in Uganda. COMAGRI Project (Geneva, ILO) Dias, P. UNFAO. Analysis of incentives and disincentives for tobacco in Mozambique. Technical notes series Hu, The-Wei; Lee, Anita H. Tobacco Control and Tobacco Farming in African Countries. February Kuperstein, Anna. Tobacco 's Weakest Link: Why Tobacco Farmers are Essential Players in the Fight Against Big Tobacco Goger, Annelies; Bamber, Penny; Gereffi, Gary. The Tobacco Global Value Chain in Low-Income Countries. February Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3,

17 73 Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Hamilton, Richard. Madagascar s scramble for sapphires. BBC News. August 1, Macrae, Callum. Mozambique s Gem Wars. Al Jazeera. December 10, Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3, Valoi, Estacio. The Blood Rubies of Montepuez. Foreign Policy. May 3,