In November, when we wrote our last article, we said that the exercise of predicting the future was becoming increasingly complex, given the context the country was going through. Since then, the situation has worsened, fuelled by the ‘Turbo V8’ phase and the state of disorder that still persists. Daily reports of blocked roads, invaded properties and vandalised tourist resorts reveal the size of the challenge.
Employment in Mozambique is more than an economic objective: it is a fundamental pillar for ensuring sustainable growth. In a context where the population continues to grow at a rapid pace, it becomes vital to think strategically about how to translate this demographic challenge into opportunities. In this article, we will explore how the creation of quality jobs can not only boost the economy, but also prevent future instabilities and promote a more promising horizon.
The current context: population growth and economic instability
Mozambique is facing significant demographic pressure, with the population projected to reach around 46 million by 2034. This growth implies critical challenges: every year there are a million more Mozambicans in need of education, health and, above all, job opportunities. The lack of prospects for these young people has repercussions that go beyond the economy; social and political instability is a real threat that, if not contained, could jeopardise the country’s security and development.
The last few months have made this situation even worse. Political and economic instability not only discourages investment, but also fuels capital flight. In addition, the postponement of strategic projects and the possibility of the devaluation of the metical illustrate a scenario that requires urgent and coordinated intervention.
The relationship between employment and stability
Employment is not just a source of income; it is a social anchor and a catalyst for stability in times of uncertainty. For a country like Mozambique, which has strategic sectors with a high potential for generating jobs – such as agriculture, energy, infrastructure and tourism – the challenge lies in turning this potential into reality.
Creating quality jobs will have a transformative impact on Mozambique.It will reduce poverty, contribute to social stability and boost economic growth
The lack of economic and political predictability has been a deterrent to Foreign Direct Investment. Neighbouring countries such as Botswana and Namibia have benefited from this vacuum, attracting capital that could be boosting the Mozambican economy. This is a clear warning: without creating a favourable environment for employment and investment, the country’s competitiveness will continue to deteriorate.
Sectors with Potential for Job Creation
1. Agriculture and Agro-industry
With a robust agricultural base, Mozambique will have the opportunity to add value by industrialising the sector. The development of value chains in agro-industry can generate formal and informal jobs, while improving food security and exports.
2. Energy and Mining
Natural gas projects in the northern region are examples of how natural resources can boost employment and income. However, it is essential that they include more active local participation, capacity building and technology transfer to maximise impact and, in the long term, reduce dependence on Foreign Direct Investment.
The mineral sector has great potential for generating employment, through the professional structuring of mining and the correct application of concession contracts, and can also boost industrialisation and the creation of added value through the local processing of extracted mineral resources.
3. Infrastructure
The construction of roads, bridges and housing not only improves connectivity and quality of life, but also creates direct jobs in the construction sector and indirect jobs in associated services. The interconnection of railways expands national supply and maximises modal transport, as well as enabling connections with neighbouring countries that can import/export their products through Mozambican ports.
4. Tourism
Despite recent damage to the sector’s reputation, tourism is an area with great potential to create jobs, especially for young people. Promoting local destinations and investing in security can revitalise this industry.
Mozambique has one of the most exuberant coastlines for diving, beaches with crystal-clear waters, a rich history, a vibrant culture and a naturally hospitable people – invaluable resources that, if promoted properly, can boost the industry continuously and sustainably.
Policies Needed to Stimulate Employment
For employment to become the engine of economic development, some essential policies must be prioritised:
- Education reforms: The gap between the skills offered by the education system and labour market demand needs to be filled. Technical and vocational training programmes can prepare young people with the tools they need to compete in a modern economy.
- Investment incentives: Facilitating the business environment through tax incentives, clear policies and legal stability can attract investments that create jobs.
- Focus on entrepreneurship: Supporting small and medium-sized businesses with access to credit at differentiated and attractive rates, infrastructure and training is essential to generate sustainable jobs.
- Reforms in the justice sector: The last few months have witnessed a complete degradation of public order that has resulted in material and human damage that has yet to be fully ascertained. Some irreparable, and others that, in addition to capital, will require a great degree of trust in public security and the protection of individual and property rights.
Good employment policies will require reforms in all sectors
The Economic Impact
The creation of quality jobs will have a transformative impact on Mozambique. Firstly, to reduce poverty by providing income and security. Secondly, by contributing to social stability by mitigating tensions that degenerate into conflict. Finally, to boost economic growth by stimulating domestic consumption and tax revenue.
In our previous article, we presented the concept of a ‘lost decade’ as a real threat if the country fails to align population and economic growth policies. To avoid this scenario, it is imperative to align economic policies with the needs of the growing population. There is no ignoring the fact that, without structural changes, millions of Mozambicans (and consequently the country) will continue to face a future of uncertainty.
Final Reflection: A Roadmap to Prosperity
Mozambique is at a turning point. With a young and growing population, the country has a unique opportunity to transform this human resource into an engine of growth and innovation. However, this opportunity will only be realised if there is a clear vision, supported by pragmatic policies and collaborative efforts between the government, the private sector and civil society.
The challenge is not just to create jobs, but decent, quality jobs that promote stability and inclusion. The success of this endeavour will be a decisive moment, determining whether Mozambique emerges as an example of resilience and sustainable growth or whether it faces a decade marked by instability and missed opportunities.
The time to act is now. Just as a house built on rock can withstand storms, so Mozambique can build a solid future based on the resilience of its people and the vision of committed leaders. We have never had so much information about what needs to be done and the conditions to do it are right in front of us. Action is the only way to turn this potential into reality – so that all Mozambicans have the opportunity to prosper.
