Economy of Mozambique the second international fibre (EASSy) in 2010. The lower cost of bandwidth has already started to trickle down to lower consumer prices in some service segments, while others have remained unchanged. The banking system collapsed after independence from Portugal in 1975. From an earlier position (in the 1980s) of central government control of the economy, Mozambique has initiated rapid reforms in recent years, accelerating the implementation of market-based economic policies, and committing to a policy of fiscal and monetary discipline. In 1995 the government introduced its medium-term economic growth, strategy which it continues to pursue. Since the late 1990s, both
Mozambique Line States. 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 neighbouring 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. The Soviet Union and its allies became Mozambique's primary economic, military