Mozambique, a country with a long history of military and political instability, faces on-going economic and political uncertainty. Economically, it continues to be profoundly impacted by the negative consequences of the so-called “hidden loans”. Politically, the sudden death of Afonso Dhlakama, leader of Resistência Nacional de Moçambique (RENAMO), and the emergence of what is being called “Islamic radicalism” in the northern part of the country cast doubt upon Mozambique’s prospects to live under full peace and stability. 

Economic growth proves unsustainable for the Southern African state of Mozambique in present world situation due to financial implications that have been going on for some time now. 

Mozambique, long touted as an African “success story”, is sinking under debt. International lenders and donors have been angered by revelations of at least $2.3 billion in secret loans taken in 2013-4. Inflation is rising and so is the cost of living. The government is clamping down on critics speaking up about the crisis. The future looks uncertain.