Mozambique plans to purchase three aircraft, six locomotives in 2026

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Mozambique plans to purchase three aircraft, six locomotives in 2026

4:07 CAT | 20 Nov 2025

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

Mozambique plans to acquire three aircraft and six locomotives in 2026 as part of efforts to strengthen its air and rail transport sectors, according to the budget proposal currently under discussion in parliament.

The Economic and Social Plan and State Budget (PESOE) documents for 2026, accessed by Lusa, show plans to purchase 25 buses, six locomotives, three aircraft, a buoy tender ship, and 30units of monitoring and navigation equipment”.

These investments primarily target state companies Linhas Aéreas de Moçambique (LAM), currently undergoing restructuring, and Portos e Caminhos de Ferro de Moçambique (CFM).

The government expects a 2.2% increase in air traffic in 2026 compared with 2025, driven by the introduction of three passenger and cargo aircraft, the reopening of routes, increased flight frequency, and improved punctuality.

Air cargo volumes are also projected to grow by 4.3% in 2026, supported by the expanded fleet and reopening of an international route.

Prime Minister Benvinda Levi informed parliament on 13 November that LAM’s restructuring includes staff reductions and expects the arrival of two Embraer aircraft this year. These acquisitions will enable the airline to operate increasingly with its own planes.

The government aims to stabilise LAM financially and operationally, improve service quality and coverage, and enhance its role in boosting the tourism industry.

In October, LAM wet-leased an Airbus A319 from Ukraine, with a capacity of 144 passengers, to reinforce its fleet.

On the same day as the Prime Minister’s speech, Transport Minister João Matlombe said that three state companies would inject $130 million (€111.8 million) to recapitalise LAM. The restructuring will also see 80 workers leave the airline.

The government’s February decision to sell 91% of LAM’s capital to state-owned companies—Hidroelétrica de Cahora Bassa (HCB), Caminhos de Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (EMOSE)—will fund this recapitalisation, fleet renewal, and operational restructuring.

This move strengthens the strategic national role of LAM, retaining state control and ensuring the airline serves public interests.

Minister Matlombe highlighted that over the last decade, LAM has faced persistent economic and financial difficulties due mainly to high debt to banks and suppliers, high operating costs (including leasing, maintenance, and fuel), and a workforce size disproportionate to its operational volume.

LAM recorded operational losses of 4.6 billion meticais (€61.9 million) in 2020, reduced to 2.6 billion meticais (€35 million) in 2023.

Source: Lusa