Mozambique: LAM accumulated debt fell by 5.7% in 2023 to $105.9 Million

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Mozambique: LAM accumulated debt fell by 5.7% in 2023 to $105.9 Million

10:55 CAT | 28 Apr 2024

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File photo: Facebook/LAM

The Ministry of Economy and Finance revealed, in a report, that the debt of the state-owned company Linhas Aéreas de Moçambique (LAM) decreased by 5.7% in 2023, amounting to $105.9 million (6.6 billion meticais), compared to $112.3 million (7 billion meticais) in 2022.

According to the document, released this Friday (26), overall, the companies that make up the State Business Sector (SEE) had a total debt stock of $612.1 million (38.6 billion meticais) at the end of 2023, a reduction of almost 10% in one year.

“It should be noted that after Rádio Moçambique managed to fully settle its debts in 2022, in 2023 three other companies – Televisão de Moçambique, Correios de Moçambique, and DOMUS – also fully settled their debts,” it described. According to the report, the SEE debt stock in 2023 was led by the company Aeroportos de Moçambique, with $199.4 million (12.6 billion meticais), followed by Caminhos-de-Ferro de Moçambique, with $113.4 million (7.1 billion meticais).

LAM has been led for almost two months by Theunis Crous, who is also the CEO of the South African company Fly Modern Ark (FMA), appointed by the Government in April of last year to restructure the state-owned airline. The company’s strategy follows years of operational problems related to a reduced fleet and lack of investments.

LAM’s flight network includes 12 destinations in the domestic market. Regionally, it regularly flies to Johannesburg, Dar-Es-Salaam, Harare, Lusaka, and Cape Town, while Lisbon has been the only intercontinental destination since December 12.

The airline operates more than 40 flights daily, operated through its fleet consisting of one Boeing 737, three Q400s, two Bombardier CRJ 900s, and two Embraer 145s operated by its subsidiary Moçambique Expresso (MEX).

Source: Diário Economico