This paper examines Mozambique's post-civil war transformation, focusing on its democratic reforms and shift to a free market economy. It investigates the impact of these changes on economic development, emphasizing successful privatization and foreign cooperation while highlighting persistent issues of income inequality, political challenges, monopolies, and gender disparities. Using a process-tracking method within a case study framework, the research comprehensively analyzes Mozambique's policies and their implications. Findings reveal the remarkable economic growth of Mozambique, yet they also underscore the need for a holistic approach to development, addressing social, economic, and political dimensions. This study contributes to economic theory and provides practical insights for policymakers and development practitioners, analyzing the intricate dynamics influencing Mozambique's progress and offering valuable insights for similar contexts.