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In 1990, Mozambique was estimated to be the world's poorest nation; since then, the country has been in transition toward a more market-oriented economy and the prospect of raising its standard of living. Mozambique remains an overwhelmingly agricultural and poor country, however, with the majority of its workers engaged in traditional subsistence cultivation. The principal cash crops include cashews, sugarcane, cotton, copra, and tea. Cattle and goats are raised, but their numbers are kept low by the tsetse fly. There are small forestry and fishing industries, including shrimp. The country's mineral wealth has not been determined fully; however, titanium and natural-gas deposits are being developed by foreign investors. There are also significant coal deposits, which are mined in small amounts, and hydropower potential. Many citizens work abroad in South African mines.
Mozambique's industrial sector is devoted largely to the processing of raw materials. In addition, chemical fertilizer, refined petroleum, construction materials (particularly cement), steel, aluminum, and textiles are produced. Electricity from the giant Cabora Bassa hydroelectric project (located on the Zambezi near Tete) is exported to South Africa. A smaller hydroelectric plant is situated at Chicamba Real (near Beira) on the RevUe River. The economy is also reliant on foreign aid.
The annual cost of Mozambique's imports is usually much higher than its earnings from foreign sales. The principal imports are foodstuffs, farm equipment, crude petroleum and petroleum products, and machinery; the chief exports are shrimp, cashews, cotton, sugar, copra, tea, and citrus. South Africa, the nations of Western Europe, and the United States are the country's chief trading partners. Mozambique also derives income from handling foreign trade for nearby countries; goods are shipped on rail lines that terminate at the ports of Maputo, Beira, Nacala, and Lumbo (near MoCambique). A toll road that opened in 1998 carries goods from South Africa's industrial north to Maputo. Mozambique is a member of the Southern African Development Community.
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