During the 1970s and early 1980s, Mozambique's foreign policy was inextricably linked to the struggles for majority rule in Rhodesia and South Africa as well as superpower competition and the Cold War. Mozambique's decision to enforce UN sanctions against Rhodesia and deny that country access to the sea led Ian Smith's regime to undertake overt and covert actions to destabilize the country. Although the change of government in Zimbabwe in 1980 removed this threat, the apartheid regime in South Africa continued to finance the destabilization of Mozambique.

The 1984 Nkomati Accord, while failing in its goal of ending South African support to RENAMO, opened initial diplomatic contacts between the Mozambican and South African governments. This process gained momentum with South Africa's elimination of apartheid, which culminated in the establishment of full diplomatic relations in October 1993. While relations with neighboring Zimbabwe, Malawi, Zambia, and Tanzania show occasional strains, Mozambique's ties to these countries remain strong.

In the years immediately following its independence, Mozambique benefited from considerable assistance from some western countries, notably the Scandinavians. Moscow and its allies, however, became Mozambique's primary economic, military, and political supporters and its foreign policy reflected this linkage. This began to change in 1983; in 1984 Mozambique joined the World Bank and International Monetary Fund. Western aid quickly replaced Soviet support, with the Scandinavians, the United States, the Netherlands, and the European Union becoming increasingly important sources of development assistance. Italy also maintains a profile in Mozambique as a result of its key role during the peace process. Relations with Portugal, the former colonial power, are complex and of some importance as Portuguese investors play a visible role in Mozambique's economy.

Mozambique is a member of the Non-Aligned Movement and ranks among the moderate members of the African Bloc in the United Nations and other international organizations. Mozambique also belongs to the Organization of African Unity/African Union and the Southern African Development Community. In 1994, the Government became a full member of the Organization of the Islamic Conference, in part to broaden its base of international support but also to please the country's sizeable Muslim population. Similarly, in early 1996 Mozambique joined its Anglophone neighbors in the Commonwealth. In the same year, Mozambique became a founding member and the first President of the Community of Portuguese Language Countries (CPLP), and maintains close ties with other Lusophone states.

Macroeconomic Review

During their summit in Scotland in July 2005, the G8 nations agreed to significant multilateral debt relief for the worldís least developed nations. On December 21, 2005, the IMF formalized the complete cancellation of all Mozambican IMF debt contracted prior to January 1, 2005.