Mozambique will remain heavily dependent on foreign aid for the "foreseeable future" despite the "impressive" economic performance during the 1990s, the Economist Intelligence Unit (EIU) said on Tuesday. Quoting a recent report from the IMF the EIU said Mozambique would need an estimated US $5.4 billion in external funding over the next five years.

"Aid dependence is highlighted by the fact that grants and debt relief make up 70 percent of the finance needed to close the balance-of-payments gap, while concessional loans account for a further 18 percent, leaving a private-sector contribution of only 12 percent," the EIU noted.