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Mozambique: INSS wants to be part of LAM’s shareholder structure – report
10:59 CAT | 07 Jul 2025
File photo: AIM
The National Institute of Social Security (INSS), an institution subordinate to the Ministry of Labour and Social Action, has expressed interest in joining the shareholder structure of the national flag carrier Mozambique Airlines (LAM), which is currently experiencing a financial crisis.
The fact was announced by government spokesperson Inocêncio Impissa in Maputo on Friday (04-07), reporting on the issues discussed during the 23rd ordinary session of the Council of Ministers the previous Tuesday (01-06).
Impissa, who is also the Minister of State Administration and Civil Service, said that the government sees the entry of the INSS as a possibility because there are still elements that have yet to be revealed.
“This possibility needs to be studied in more detail, because, as you know, while the three companies that embody the current shareholder structure of LAM are public companies, with public capital, the INSS is not. The INSS has private and private capital – in particular, from the workers,” Impissa said.
He explained that the model for the entry or not of the INSS into the shareholder structure may be different “but it is an open space to continue discussing and negotiating”.
“It is not yet confirmed as far as we know about the entry or not of the INSS, but it is a possibility,” he said.
In the second half of February this year, the government announced that three national companies would secure 91% of LAM shares, estimated at US$130 million.
The Cahora Bassa Hydroelectric Power Plant (HCB), the Mozambique Railways (CFM) and the Mozambican Insurance Company (EMOSE) have expressed interest in acquiring the state’s stake in LAM through private negotiations.
The government intends to purchase eight aircraft and restructure LAM with the money.
The financial crisis at LAM is linked to corruption committed workers during the acquisition of services for the company, with debts owed to suppliers estimated at more than US$230 million dollars.
“Any move would be conditional on the format or mechanism that is found for (the INSS) to come in, given that the INSS has, firstly, different shareholders and, secondly, different rules due to the nature of the capital it represents,” Impissa said.
Regarding the launch of the new airline in Mozambique, Solenta Aviation, Impissa noted that it would affect not only LAM but also the entire aviation sector in the country and worldwide.
He acknowledged that all of Solenta Aviation’s documentation was complete to obtain the license but “at the same time, within the framework of the reform (of LAM) being carried out, there are measures that are being observed to ensure that Solenta’s authorization responds to this reform process that is underway”.
He assured that the executive was aware of the Solenta Aviation process, and that the Minister of Transport and Logistics, João Matlombe, has been in constant contact with the Solenta Aviation representation, to deal with the matter.
READ: Solenta Aviation Mozambique: Scheduled air operations
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Source: AIM Moçambique
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