State-owned companies in Mozambique face financial crisis – Government

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State-owned companies in Mozambique face financial crisis – Government

9:46 CAT | 08 May 2018

File photo: IGEPE headquarters in Maputo

A total of 20 mainly state-owned companies in Mozambique face a financial crisis, the Administration of State Participation Institute (IGEPE) announced yesterday.

“We are struggling to investment in these companies,” IGEPE Board of Directors chairperson Ana Coanai said on the sidelines of a meeting about state business sector legislation in Maputo.

Coanai said that the Mozambican government was looking for investment partners as part of the restructuring plan already under way.

“We need to ensure that there is a permanent investment, and this can only happen through partnerships,” Coanai explained, without advancing the amount needed to capitalise the companies.

The first phase of the restructuring plan will see the merger of Mozambique Cellular (Mcel) and Telecomunicações de Moçambique, two of the companies that have experienced financial difficulties in recent years.

“We have already made the decision about the two companies and the intention now is for the process to be concluded by the end of this year,” Coanai said.

Money owed to banks is one of the main challenges facing these companies, and the government is negotiating debt restructuring to overcome the problem.

“Not everything is bad. We are working on it, and we believe that good times will come,” Coanai concluded.

No redundancies in TDM / Mcel – Mozambique

Source: Lusa