INTERNATIONAL POLICY ANALYSIS Economic Transformation in Mozambique Implications for Human Security Katharina Hofmann August 2013 n Mozambique is currently experiencing an important stage in its economic development that will have a crucial impact on the social and political environment and well-being of its citi­zens. This is due to high growth rates(7.5 per cent for GDP in 2012, according to the IMF) and the discovery of resources(mainly coal and gas) accompanied by growing regional and international business interests. Mozambique ranks among the five best GDP performers in Africa, albeit starting at a very low level. n So far Mozambique`s economy has not undergone any significant structural change. There has been no economic transformation despite more than a decade of sustained economic growth. Recent discoveries of resources may alter the development path and lead to an eco­nomic transformation if revenue from these natural resources and foreign direct investments (FDIs) lead to investment in job-creating industries. n One obstacle in this positive scenario is the lack of transparency and deficient communication by political elites about the dynamics of economic transition combined with a lack of oppor­tunity for political participation by Mozambican citizens that is tending to create a potential for political and social conflict. n The aim of the paper is to identify opportunities and risks in the current economic transfor­mation and its impact on human security. A purely GDP-based analysis of current economic growth in Mozambique feeds into the»Aspiring Africa«-debate 1 but only creates a»myth of Africa´s rise« 2 if it is not underpinned by political developments that improve the situation of the majority of the population still living in poverty.