Mozambique: Financial crisis blocks passenger transport

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Mozambique: Financial crisis blocks passenger transport

7:51 CAT | 16 Aug 2025

FILE - For illustration purposes only. [File photo: AIM]

Mozambique’s financial crisis is blocking the development of passenger transport, according to the Mozambican Federation of Road Transport Associations (Fematro).

Fematro spokesperson, Jorge Manhica, interviewed by the independent television station STV, said companies operating both urban and inter-provincial bus routes have found it increasingly difficult to obtain credit from the banks. As a result vehicles, some of which only require minor repairs, are held up in workshops for lack of payment, and further investment is not forthcoming.

“Currently, the banks don’t want to finance urban transport”, said Manhica. “Access to credit is also restricted for inter-provincial transport. We have more than 150 buses held up in the workshops, although they would only need small repairs to go back on the roads”.

The lack of a well-structured transport plan is preventing investment, he said, and “within a few years, we will back to square one”.

Manhica noted that Mozambican businesses had invested in modern buses, but the poor conditions of the roads, particularly the main north-south highway (EN1), increased the costs and reduced the return on the investment.

“When a bus leaves Maputo heading for the central or northern provinces, often it reaches its destination with serious mechanical damage”, said Manhica. “This is the result of the lack of infrastructures”.

Transport engineer, Nelson Mabucanhane, told STV that some of the problems facing road transport operators resulted from the government ordered freeze in bus fares in the Greater Maputo Metropolitan area since the 1990s. “When the fares are frozen, the area becomes non-viable for private business”, he said. “The government promises subsidies, but it doesn’t keep its promises. Fares must be liberalised so that the operators can cover their costs and make a profit”.

Source: AIM