Mozambique: Govt authorises sale of 91% of LAM to state-owned companies

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Mozambique: Govt authorises sale of 91% of LAM to state-owned companies

12:04 CAT | 05 Feb 2025

Photo: Jornal Moçambique

Only three state-owned companies – the Cahora Bassa Hydroelectric (HCB), the Mozambique Ports and Railways (CFM) and the Mozambican Insurance Company (EMOSE( – can acquire the state’s stake in Linhas Aéreas de Moçambique (LAM).

The Mozambican government this Tuesday authorised the sale of 91% of the state’s stake in Linhas Aéreas de Moçambique (LAM) to state-owned companies, indicating that the money thereby acquired will be used to acquire eight aircraft.

“The Government has approved the resolution authorising the sale of 91% of the State’s shares in the company LAM by private negotiation,” Council of Ministers spokesperson Inocêncio Impissa announced after a session of that body in Maputo.

The resolution determines that only three state-owned companies – the Cahora Bassa Hydroelectric Plant (HCB), Mozambique Ports and Railways (CFM) and the Mozambican Insurance Company (EMOSE) – may acquire the State’s stake in LAM.

“With the amount raised from the sale of 91% of its stake, estimated at US$130 million (€125 million), we intend to invest in the acquisition of eight aircraft and the restructuring of the company,” Impissa detailed.

The Mozambican government also clarified that the companies that will acquire LAM shares will have to provide periodic information to the government, with a view to analysing the impacts of their intervention on the restructuring plan of the state-owned airline.

“The State business sector will carry out this action, in fact providing an indirect form of management for this company. What is expected is that these companies, as they have autonomy and have the characteristics of companies that compete with the private sector, will use the management rules of international companies,” Impissa explained.

According to a notice seen by Lusa, LAM on January 31st launched a procedure to contract the supply of Embraer ERJ190 and Boeing 737-700 aircraft. The tender involves the submission of expressions of interest for the supply of aircraft of these two models by national or foreign companies or consortiums and is open until next Friday (07-02).

Mozambique returned the Boeing 737-300 cargo plane to Indonesia after a year of the plane not operating due to the lack of national certification and recognition of the aircraft modifications by the manufacturer, Mozambique’s aviation regulatory authority confirmed on January 23rd.

The day before the cargo aircraft flew back to Indonesia, LAM had announced the appointment of Marcelino Gildo Alberto as chairman of the board of directors, the third appointment to lead the airline in less than a year. He replaces Américo Muchanga, who in turn had replaced Theunis Crous, from Fly Modern Ark (FMA), the South African company hired to turn around LAM.

During Fly Modern Ark’s management, the South African company reported embezzlement schemes at LAM, with losses of almost €3 million via ticket sales outlets using automatic payment terminals machines not belonging to the company.

The Central Office for Combating Corruption (GCCC) of Mozambique has opened proceedings to investigate alleged corruption schemes in the sale of tickets by the Mozambican airline and in the management of the company’s fleet, and has seized various materials.

LAM operates 12 destinations in the domestic market. At a regional level, it flies regularly to Johannesburg, Dar-Es-Salaam, Harare, Lusaka, and Cape Town, with Lisbon being the only intercontinental destination, but has faced ongoing operational problems.

Source: Lusa