As a frontier market, doing business in mozambique is not without its challenges. In addition to those usual considerations the elections scheduled for late 2014 create another layer of uncertainty in the country, though the dominant FRELIMO party is expected to retain power, meaning no major change of direction in government policy.
However, counterbalancing the usual governance and fiscal challenges associated with frontier markets are some very favourable indicators which make Mozambique an attractive place to do business. Inflation is expected to come in at 5.6% for 2015 and is well anchored. The country enjoys "high economic growth, which stems from mining and gas sector development and gradually improving economic management in close cooperation with the International Monetary Fund and other international financial institutions," says S&P.
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