Mozambique: Government opens public companies to private sector

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Mozambique: Government opens public companies to private sector

7:40 CAT | 04 May 2017

Notícias

Ninety-nine state-owned or part-owned enterprises are undergoing processes of restructuring and alignment, with the goal of making them efficient, profitable and net contributors to the state budget.

Prime Minister Carlos Agostinho do Rosario told the Assembly of the Republic yesterday that the process proposes various strategies, including opening up capital, restructuring strategic focus and assigning exploration.

State participation in 27 companies is in the process of being sold. Seven companies are being sold to managers, technicians and employees, and twenty to majority shareholders, through the exercise of pre-emptive rights. Another 29 companies are in the process of dissolution and liquidation.

In all, the state has interests in 99 companies, of which 13 are fully public. These are Mozambique Railways (CFM), Electricidade de Moçambique (EDM), Aeroportos de Moçambique, Empresa Nacional de Hidrocarbonetos (ENH), Televisão de Moçambique (TVM), Rádio Moçambique (RM), Hidráulica do Chókwè, Regadio do Baixo Limpopo, Correios de Moçambique, Empresa Nacional de Parques de Ciência e Tecnologia, Imprensa Nacional, Maputo Sul and Emodraga.

Two, Farmac and the National Distributor of School Material are state companies.

Among companies with state participation are those which are operating normally and are in a stable financial situation and others which are undergoing a restructuring process that includes the establishment of partnerships and business model adequacy examinations. This latter group includes CFM, Banco Nacional de Investimentos, Empresa Moçambicana de Seguros (Emose), EDM, Aeroportos de Moçambique, Mozambique Airlines (LAM), Mozambique Telecommunications (TDM) and Mozambique Cellular (mCel).

“In the case of LAM, the process of identifying a strategic partner for joint exploration aimed at improving operational capacity has begun. This will allow the company to respond to the current challenges of improving the provision of transport services safely and in a timely manner. With respect to mCel and TDM, the merger of the two companies to ensure financial sustainability and modernisation of technological infrastructure, which will make the merged company more competitive and efficient, is under way,” the prime minister said.

Regarding fuel subsidies, the Minister of Economy and Finance explained that, in 2014, compensation to petrol stations was 723 million meticais, rising to 3.9 billion meticais in 2015.

As a result of the subsidy, fuel consumption levels remained high, with high fuel import costs and a negative impact on the Current Transactions Account.

“This is how, in 2014, the government spent billions of US dollars. In 2015, another US$850 million; in 2016, US$507 million, worsening the country’s current account deficit.” he said.

Source: Notícias