After a steady increase between 2002 and 2006, growth of Mozambique’s total exports slowed down dramatically in 2007, picked up slightly in 2008 and fell in 2009 with the financial crisis. Agricultural exports collapsed in 2007 with the fall in prices of cotton and sugar in the world markets. The share of agricultural exports to total exports was reduced by half between 2002 and 2008.
Mozambique: Total and Agricultural Exports, 2002-2009 (in million USD and percentage change)
Based on the evolution of value, price and volume indices of Mozambique’s exports to US and EU, which account for 70% of Mozambique’s total exports, the slow growth in export value in 2008 is due to a rise in export prices from the end of 2007 to the 3rd quarter of 2008. Volume of exports to the US and EU actually rose while prices continued to fall through mid-2009. This fall in export prices is consistent with the decline in world prices of aluminum which accounts for nearly 60% of Mozambique’s total exports destined mainly for the EU. With the financial crisis, prices of aluminum dropped by 35% in 2009.