Mozambique: Government foresees deficit of 126.8 billion meticais this year - AIM report
Screengrab: Miramar
Tomás Langa, the Commercial Director of Mozambique’s Southern Regional Water Company (AdRS), has revealed that the company has accumulated a loss of over 540 million meticais (8.4 million US dollars at the current exchange rate) as a result of debts incurred by its clients, including state institutions, especially schools and health units.
According to Langa, who was speaking at the start of a debt recovery campaign, in the southern city of Xai-Xai, the institutions owing the amount are located in Inhambane and Gaza provinces.
“State institutions alone accumulated debts of about 192 million meticais. The largest share falls to the health and education sectors in the provinces of Gaza and Inhambane. Domestic, commercial and industrial customers are also deep in debt, especially in Gaza with debts of around 300 million meticais”, he said.
Langa explained that this situation affects the expansion and improvement of the water supply system. To to solve the issue, the company launched a debt renegotiation campaign last Friday.
“This means that for a client who has a debt of, for example, 10 million, we open up more space, and we look at that client’s financial capacity. Each situation is different. Our campaign is scheduled to run until 31 December. And 5,000 clients, corresponding to approximately 23,000 people, will benefit”, he said.
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