Mozambique: Tmcel to cut workforce by half – Watch

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Mozambique: Tmcel to cut workforce by half – Watch

2:58 CAT | 29 Mar 2022

Photo: TVM

State-owned telecommunications company Tmcel will reduce its workforce from the current 2,000 to 1,000 in the context of ongoing efforts to make the company sustainable and reduce the current 120 million meticais monthly wage bill and debt burden.

Chairman of the Board, Momed Rafique, says Tmcel has not received any state operating subsidy since 2017, and owes more than US$300 million.

“We currently have more expenditure than revenue. This is a recipe for failure. We have to reverse this situation urgently. By the end of 2022, we have to have 1,000 fewer workers,” Rafique told TVM.

“It’s not only a question of cutting 70 million [meticais] in salary, it’s about reducing inefficiency. We have to let go. Those who already have the right to go home, to go home, rest, do other things. Those who have to work, to work, to be re-qualified, retrained, so that we can bring efficiency and efficacy and, above all , profitability back to the company,” he said.

A large part of Tmcel’s real estate assets is mortgaged to the bank with repayments of 200 million meticais per month, but the company can only pay half of this amount.

To respond to these challenges, the company’s managers are betting on advanced technologies.

“On Friday we launched, for the first time ever in Mozambique, 5G technology – the real one, with speeds above 1700 Mbps megabytes per second. It’s an innovation, but we have also put Mozambique in the 5G club,” Rafique stressed.

Parliament’s Planning and Budget Committee visited Tmcel this Monday as part of its supervision and inspection of companies in the state business sector.

Recent extreme weather events and terrorist activity in Cabo Delgado have also caused the company significant losses.

Watch the TVM report.