1. BACKGROUND AND CONTEXT

1.1 INTRODUCTION

Mozambique is located in south-eastern Africa, bordering the Mozambique Channel, between South Africa and Tanzania. With a population of about 19 million people, it has been among the world‘s fastest-growing least developed countries over the past two decades. The growth averaged 7.0 per cent per annum in 1993-1999 followed by average growth of 8.1 per cent in 2000-2008. 1This growth has been mainly triggered by an increase in the global demand for minerals such as coal as well as increasing demand for new sources of energy. The latter has encouraged exploration of oil and gas of the coast of East Africa and Mozambique as the country is endowed with vast natural resources – including coal, titanium, natural gas and large underdeveloped agricultural land.

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