Mozambique is one of the larger countries in Africa with an area of approximately 801,590 square kilometres and is bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini (Swaziland) and South Africa to the southwest. Mozambique provides port service to its landlocked neighbours such as eSwatini, Zimbabwe and Malawi. According to the World Bank, the population of Mozambique is around 34.6 million people.
The country’s economy has shown resilience over the years, despite facing numerous challenges. As of the latest World Bank data, Mozambique’s Gross Domestic Product (GDP) stands at approximately $22.4 billion. The economic growth rate has fluctuated over the years, but it has averaged around 4% annually in recent times. Economic growth in 2024 was a low 1,8% but this is expected to reach 3% in 2025.
Route To Market Improvements
The country’s road network is extensive but largely unpaved, totalling over 30,000 km. The rail network is also significant, with 3,123 km of track, including lines compatible with neighbouring countries and a smaller gauge line. Overall the infrastructure is poor and route-to-market for Consumer Packaged Goods (CPG) goods is challenging.
Mozambique is undergoing significant infrastructure development aimed at boosting its economic capabilities and improving the quality of life for its citizens. Some of the key infrastructure projects include:
Maputo-Katembe Bridge: The Maputo-Katembe Bridge, which opened in 2018, is the longest suspension bridge in Africa. It connects the capital city, Maputo, with the southern region of Katembe, significantly reducing travel time and fostering economic integration.
Nacala Corridor: The Nacala Corridor project aims to enhance connectivity between the port of Nacala and the inland regions of Mozambique, Malawi, and Zambia. This infrastructure initiative includes the development of railway lines, roads, and port facilities, facilitating trade and transportation.
Mphanda Nkuwa Hydropower Project: This ambitious project is set to generate over 1,500 megawatts of electricity, addressing the country’s energy deficit and providing a sustainable power source for both domestic use and export.
Pemba Logistics Base: The Pemba Logistics Base in the northern province of Cabo Delgado is designed to support the burgeoning natural gas industry. It includes the construction of facilities for the storage and transportation of liquefied natural gas (LNG), contributing to the sector’s growth.
Details on the Retail Sector of Mozambique’s Economy
The retail sector in Mozambique is a vital component of the country’s economy. It accounts for approximately 25% of the total GDP, translating to a dollar value of around $3.75 billion. The retail landscape is characterized by a mix of traditional and modern trade practices, each playing a significant role in meeting the diverse needs of the population. According to the United Nations, 61% of the population live in rural areas. This significant portion of the population, living in rural areas with limited road and rail access, makes the delivery of CPG goods difficult.
Traditional trade in Mozambique includes informal markets, street vendors, and small family-owned shops. This segment of the retail sector is deeply rooted in the daily lives of Mozambicans, providing essential goods and services to both urban and rural communities. Traditional trade is estimated to constitute about 85% of the retail market, underscoring its importance in the local economy.
Modern trade, on the other hand, encompasses supermarkets, hypermarkets, and shopping malls most of which are found in Maputo. Although relatively new, modern trade has been growing steadily, fuelled by urbanization and rising disposable incomes. It currently represents around 15% of the retail sector, with major players like Shoprite, Spar, and Game establishing a presence in the country.
Mozambique’s retail sector is poised for further growth, driven by increasing consumer demand and ongoing investment in infrastructure.
How Frontline Research Group Can Facilitate Market Entry and Expansion
Frontline Research Group have been conducting market research in Mozambique for many years and have geolocated over 35 000 retail outlets along with important data about each of these outlets. Research is ongoing and so this number continues to increase.
According to Steve Johnson, Managing Director, “CPG companies aiming to enter or expand their operations in Mozambique will find that our regional expertise makes this a lot easier. Our skill and expertise in operating in the traditional trade sector are unsurpassed”
Frontline Research Group employs advanced tools and methodologies for data collection and analysis, focusing on market trends, consumer behaviours, and competitive dynamics. Their ongoing retail census and audit programs provide continuous, reliable insights into the evolving retail environment.
Contact Information
For participation in ongoing retail audits or to enquire about bespoke research projects, please reach out to Steve Johnson: Tel. +230 5493 6376, email: steve@frontlineafrica.com
