Case Study Country - Mozambique Conflict began in Mozambique in 1964 as part of the struggle for independence led by Frelimo. After Portugal had granted independence in 1975, there was a short period of peace until the opposing Renamo faction was formed, beginning a continuous conflict that only ended in 1992. Frelimo s socialist policies were initially popular with Mozambicans who had few opportunities during colonial rule. However, by the early 1980s these policies had increased poverty and disenchantment. South Africa began to support Renamo at this time and the conflict became a blend of conflicts operating at local and national level and also involving regional actors and cold war powers who used Mozambique as a battleground for continuing their ideological wars. The conflict peaked in the mid 1980s and the country became split into Renamo and Frelimo held territories. However the changing world order of the 1990s meant that support from South Africa and the Soviet Union was withdrawn. In June 1990 amidst crop failure, massive population displacement and a decimated infrastructure, talks between the Frelimo government and Renamo began. A peace agreement was signed in Rome on 4 October 1992 and despite delays in its implementation, the peace was held. The conflict claimed the lives directly or indirectly, of over one million Mozambicans. It created over 1.6 million refugees and caused the internal displacement of about 3.7 million people. Since 1994, when Mozambique was ranked as one of the poorest countries in the world, the country has undertaken a series of economic reforms, involving the liberalisation of most aspects of the economy. Between 1997 and 1999, the economy grew by 10% p.a. and annual inflation has also been stable during that period, resting today at a similar level to Cambodia (4.5% p.a.). Currently, there are no nation-wide microfinance operators in Mozambique, but about five or six medium-sized regional operators.