IV.  POLITICAL ENVIRONMENT

NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES

MOZAMBIQUE AND THE U.S. HAVE STRONG BILATERAL RELATIONS, WITH THE
U.S. PROVIDING SUBSTANTIAL FINANCIAL AID TO MOZAMBIQUE.  IN 1994,
THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT PLANS TO PROVIDE
MOZAMBIQUE WITH ASSISTANCE TOTALING USD 108 MILLION.  ADDITIONAL
U.S. FINANCIAL SUPPORT IS GIVEN TO MOZAMBIQUE THROUGH U.S.
PARTICIPATION IN THE WORLD BANK, THE UNITED NATIONS, THE AFRICAN
DEVELOPMENT BANK, AND OTHER MULTILATERAL AID ORGANIZATIONS.

MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE

MOZAMBIQUE HAS BEEN A ONE-PARTY STATE SINCE INDEPENDENCE IN 1975
BUT IS NOW MOVING TOWARDS A MULTI-PARTY DEMOCRACY.  THE COUNTRY'S
FIRST DEMOCRATIC ELECTIONS ARE SCHEDULED FOR OCTOBER 1994.
ALTHOUGH POLITICAL UNCERTAINTIES HAVE BEEN DETRIMENTAL TO THE
BUSINESS CLIMATE, THE POST-ELECTION PERIOD SHOULD PROVIDE A MORE
STABLE AND POSITIVE ENVIRONMENT FOR BUSINESS IN MOZAMBIQUE.