Recreating colonialism or reconstructing the state? Privatisation and politics in Mozambique

Abstract

The privatisation process currently taking place in Mozambique raises important questions about state/capital relations. While supporters of the process argue that the state will become more efficient and the economy more productive, critics claim that privatisation is tantamount to recolonisation. To explore the new relationship being forged between state and capital, this article looks at the different operations of two joint venture cotton companies in the northern districts of Nampula and Cabo Delgado. It assesses the impact of capital formation on the state's regulatory powers, policy‐making capacity, and legitimacy, and how local communities have reacted to the changes brought by private investment in cotton production. The article argues that privatisation constrains the government's capacity to shape the economy, but offers opportunities for it to seek legitimacy at the national and local level. Moreover, the diverse investment and production strategies pursued by the two private cotton companies suggest that capitalism will have a varied and uneven impact in the country, depending on the capabilities and objectives of national and foreign investors. Local responses by producers and traditional authorities coupled with the exercise of regulatory powers by the national government will also shape the future development of capitalism in Mozambique.