Mozambique\'s first inhabitants were San hunters and gatherers, ancestors of the Khoisani people. Between the first and fourth centuries AD, waves of Bantu-speaking people migrated from the north through the Zambezi River valley and then gradually into the plateau and coastal areas. The Bantu were farmers and ironworkers.
When Portuguese explorers reached Mozambique in 1498, Arab-trading settlements had existed along the coast and outlying islands for several centuries. From about 1500, Portuguese trading posts and forts became regular ports of call on the new route to the east. Later, traders and prospectors penetrated the interior regions seeking gold and slaves. Although Portuguese influence gradually expanded, its power was limited and exercised through individual settlers who were granted extensive autonomy. As a result, investment lagged while Lisbon devoted itself to the more lucrative trade with India and the Far East and to the colonization of Brazil.
By the early 20th century the Portuguese had shifted the administration of much of the country to large private companies, controlled and financed mostly by the British, which established railroad lines to neighboring countries and supplied cheap African labor to the mines and plantations of the nearby British colonies and South Africa. Because policies were designed to benefit white settlers and the Portuguese homeland, little attention was paid to Mozambique\'s national integration, its economic infrastructure, or the skills of its population.
After World War II, while many European nations were granting independence to their colonies, Portugal clung to the concept that Mozambique and other Portuguese possessions were overseas provinces of the mother country, and emigration to the colonies soared. Mozambique\'s Portuguese population at the time of independence was about 250,000. The drive for Mozambican independence developed apace, and in 1962 several anti-colonial political groups formed the Front for the Liberation of Mozambique (FRELIMO), which initiated an armed campaign against Portuguese colonial rule in September 1964. After 10 years of sporadic warfare and major political changes in Portugal, Mozambique became independent on June 25, 1975.
The last 30 years of Mozambique\'s history have reflected political developments elsewhere in the 20th century. Following the April 1974 coup in Lisbon, Portuguese colonialism collapsed. In Mozambique, the military decision to withdraw occurred within the context of a decade of armed anti-colonial struggle, initially led by American-educated Eduardo Mondlane, who was assassinated in 1969. When independence was proclaimed in 1975, the leaders of FRELIMO\'s military campaign rapidly established a one-party state allied to the Soviet bloc and outlawed rival political activity. FRELIMO eliminated political pluralism, religious educational institutions, and the role of traditional authorities.
The new government gave shelter and support to South African (ANC) and Zimbabwean (ZANU) liberation movements while the governments of apartheid South Africa and Rhodesia fostered and financed an armed rebel movement in central Mozambique called the Mozambican National Resistance (RENAMO). Civil war, sabotage from neighboring states, and economic collapse characterized the first decade of Mozambican independence. Also marking this period were the mass exodus of Portuguese nationals, weak infrastructure, nationalization, and economic mismanagement. During most of the civil war, the government was unable to exercise effective control outside urban areas, many of which were cut off from the capital. An estimated 1 million Mozambicans perished during the civil war, 1.7 million took refuge in neighboring states, and several million more were internally displaced. In the third FRELIMO party congress in 1983, President Samora Machel conceded the failure of socialism and the need for major political and economic reforms. He died, along with several advisers, in a suspicious plane crash.
His successor, Joaquim Chissano, continued the reforms and began peace talks with RENAMO. The new constitution enacted in 1990 provided for a multi-party political system, market-based economy, and free elections. The civil war ended in October 1992 with the Rome General Peace Accords. Under supervision of the ONUMOZ peacekeeping force of the United Nations, peace returned to Mozambique.
By mid-1995 the more than 1.7 million Mozambican refugees who had sought asylum in neighboring Malawi, Zimbabwe, Swaziland, Zambia, Tanzania, and South Africa as a result of war and drought had returned, as part of the largest repatriation witnessed in Sub-Saharan Africa. Additionally, a further estimated 4 million internally displaced returned to their areas of origin.
In 1994 the country held its first democratic elections. Joaquim Chissano was elected President with 53% of the vote, and a 250-member National Assembly was voted in with 129 FRELIMO deputies, 112 RENAMO deputies, and 9 representatives of three smaller parties that formed the Democratic Union (UD). Since its formation in 1994, the National Assembly has made progress in becoming a body increasingly more independent of the executive.
After some delays, in 1998 the country held its first local elections to provide for local representation and some budgetary authority at the municipal level. The principal opposition party, RENAMO, boycotted the local elections, citing flaws in the registration process. Independent slates contested the elections and won seats in municipal assemblies. Turnout was very low.
In the aftermath of the 1998 local elections, the government resolved to make more accommodations to the opposition\'s procedural concerns for the second round of multiparty national elections in 1999. Working through the National Assembly, the electoral law was rewritten and passed by consensus in December 1998. Financed largely by international partners, a very successful voter registration was conducted from July to September 1999, providing voter registration cards to 85% of the potential electorate (more than 7 million voters).
The second general elections were held December 3-5, 1999, with high voter turnout. International and domestic observers agreed that the voting process was well organized and went smoothly. Both the opposition and observers subsequently cited flaws in the tabulation process that, had they not occurred, might have changed the outcome. In the end, however, international and domestic observers concluded that the close result of the vote reflected the will of the people.
President Chissano won the presidency with a margin of 4% points over the RENAMO-Electoral Union coalition candidate, Afonso Dhlakama, and began his 5-year term in January 2000. FRELIMO increased its majority in the National Assembly with 133 out of 250 seats. RENAMO-UE coalition won 116 seats, one went independent, and no third parties were represented.
The opposition coalition did not accept the National Election Commission\'s results of the presidential vote and filed a formal complaint to the Supreme Court. One month after the voting, the court dismissed the opposition\'s challenge and validated the election results. The opposition did not file a complaint about the results of the legislative vote.
In June 2002 Joaquim Chissano announced that he was not running for a third term at the 2004 elections. FRELIMO chose Armando Emilio Guebuza as their new presidential candidate.
Below is an analysis of Mozambique according to the 2005 Index of Economic Freedom, The Heritage Foundation and Wall Street Journal
Category: Mostly Unfree
Total Area: 801,590 sq. km
GDP: $ 4.1 billion
GDP growth rate: 7.7%
GDP per capita: $223
Major exports: aluminum, prawns, electricity, cotton, manufactures
Exports of goods and services: $1.2 billion
Major export trading partners: South Africa 17.7%, Zimbabwe 5.8%, Portugal 4.4%, Spain 2.8%
Major imports: machinery and equipment, vehicles, transport equipment, fuel, textiles
Imports of goods and services: $1.3 billion
Major import trading partner: South Africa 30.3%, Portugal 6.2%, US 4.4%, Japan 3.4%
Foreign direct investment (net): $406 million
2005 Index of Economic Freedom, The Heritage Foundation and Wall Street Journal