“Despite Mozambique’s economic growth rate being one of the highest in Africa over the past few years, much of the growth is linked to the development of highly capital intensive “mega” projects with limited absorption of unskilled workers. The urban informal sector which has hitherto absorbed considerable numbers of the unemployed has become less attractive for the rural labour surpluses as increasing competition makes economic survival more difficult. Such limitations within the domestic economy, recently exacerbated by the current drought in the South, has forced many rural households to seek employment in South Africa. Although external migration to South Africa is the preferred employment option for many Mozambicans, it represents the option of last resort for many others simply because of the limited employment absorption capacity Mozambique’s formal economy.”
