Outcome MOZ_D_2.1

By 2026 more people, particularly women and youth, participate in and benefit from a more diversified, inclusive, and sustainable economic growth based on increased production, productivity, and greater value-added chains (CF 2)

According to MEF (2024) Mozambique has experienced robust economic growth over the years, with an average Gross Domestic Product (GDP) growth rate of approximately 7.0 per cent per year for almost two decades. Recently economic recovery was registered with a Gross Domestic Product rate of 5.01 per cent in 2023. After an increase in per capita growth rate of 2% and inflation at 7.1% in 2023, estimates by the African Development Bank indicated that the country would have an increase of in read GDP Growth from 5.0 in 2023 to 5.2 in 2024 and that inflation would decrease from 7.1 in 2023 to 5.0 in 2024 and that life expectancy would increase from 62 to 63 years in 2024 (AFDB, 2024). Mozambique´s read Gross Domestic Product (GDP) was projected by the African Development Bank to grow by an average of 5,2% between 2024 and 2025 driven mainly by the extractives sector being gas production the main source. On the other hand, as per data by Mozambique Central Bank the GDP grew 3,7% in the third quarter after by 4,5% in quarter 2, and 3,2% in quarter 1 of 2024 being the extractive and agriculture sectors the main contributors to the growth.Furthermore, the couontry registered a cumulative growth of 3,8% in the first 9 months following 5,6% growth in the same period of 2023 (Banco de Moçambique, September 2024 Economic Outlook and inflation forecasts). Contrasting these macroeconomic developments is the fact increase in the proportion of population living below the national poverty line from 62% in 2023 to 68.2%. Among the factors highlighted by the National Development Strategy as the causes for exacerbation of poverty in country are i) extreme weather events such as cyclones Kenneth and Idai, which have caused substantial economic and social damage; ii), rising food prices, climatic shocks affecting agricultural production and: iii) the terrorism situation in the north of the country have exacerbated the situation (National Development Strategy, 2024). . Particularly the country continues to be one of the most disaster prone countries in the world, in 2024, the effects of an El Niño-induced drought caused a spike in food insecurity , with some 1.8 million people in Integrated Food Security Phase Classification (IPC) 3+/Crisis (including 510,000 in IPC4/Emergency), and malnutrition as a result of the rapid depletion of stocks, limited access to income, and above-average food prices. According to Famine Early Warning System Network, crisis (IPC Phase 3) outcomes are expected to persist through March 2025, particularly in the central region, at least until the next harvest season in April-May. In August 2024, a drought appeal, running from August 2024 to July 2025, was launched, targeting 1.4 million people. With a potential La Niña effect in November 2024-January 2025, the frequency and intensity of heavy rains and tropical cyclones is expected to increase in the Indian Ocean and floods are expected, including in areas currently affected by drought. Adding those, the Post-election unrest that started in October 2024 has forced thousands of Mozambicans and refugees to flee their homes (UNHCR, 2025). Setting the stage for political and economic uncertainty. Altogether these impacted the poverty rate and levels of inequality that afect particularly rural areas, women and girls who face discrimination and high rates of premature unions (UNOPS, 2024).

By 2026 more people, particularly women and youth, participate in and benefit from a more diversified, inclusive, and sustainable economic growth based on increased production, productivity, and greater value-added chains (CF 2)

While in one hand, Mozambique has made significant progress in the management of land tenure. As a result of combined contributions from UN Women, Women's Rights Organizations and pressure groups the government through its flagship programme "Programa Terra Segura" has set a goal to allocate 700,000 land deeds to Mozambican rural dwellers. 40% of the land deeds where set as the quota for women or shared men-women land deeds. This represents an advancement in the political will to recognize equal opportunities in the access to and benefit from secure land tenure among women and men in a country where women account for the majority of agricultural labor. There is more attention to risks related with land expropriation, discriminatory inheritance practices and the administrative and financial barriers to land security (now set to be USD 35.00 per tittle deed). To allow for a stronger and more inclusive legal framework the country has also embarked into land law reform process. UN Women's contribution consisted of supporting the Ministry of Agriculture and Rural Development (MADER) with evidence collection on the Cost of the Gender Gap in Agricultural Productivity in Mozambique and the overall support and capacity building of women's organizations platforms. But on the other hand, due to combined impact of natural disasters, conflict, pandemic and poor economic performance the proportion of population living below national poverty has remained high in Mozambique. This is particularly pressing among women and youth operating in the informal sector of the economy.