The government postponed municipal elections from October to the following year. The postponement was due to a dispute with opposition parties regarding the scope of the election and what constituted a municipality.
The government signed an agreement with South Africa for the joint management of the agriculturally rich Lugenda valley. A wave of anti-government demonstrations spread in response to the limitations on municipal elections. Chissano was reelected the leader of FRELIMO at the first party congress since the introduction of multiparty democracy.
Pres. Joaquim Chissano was reelected, and his Mozambique Liberation Front (FRELIMO) Party won a majority in the Parliament (133 of 250 seats). This was the second free election in Mozambique since its 16-year-long civil war ended in 1992.
