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FARMAC headquarters in Maputo. File photo: Wikimedia Commons
The Mozambican government has decided to transfer the management of the State Pharmacy Company (FARMAC) to IGEPE, tasking it with restructuring the heavily indebted company with a view to recapitalising it prior to launching it in the increasingly lucrative pharmaceutical sector in Mozambique.
The financial situation of FARMAC, a company created in 1977, has been deteriorating for almost a decade. In a liberalising market, with the entry of more and more private operators and a lack of state investment, the company has been accumulating debts with suppliers, resulting first in medicine shortages and latterly in the inability to pay its workers’ wages.
The government decided to proceed with the restructuring of the company on June 5th “with the main objective of modernising its management, organisation and operation so as to recapitalise it and increase its productive and commercial capacity so that it is able to compete with private sector companies”.
Through a joint order, the ministers of Economy and Finance and Health have determined that, within 180 days, the IGEPE “shall adopt the procedures deemed necessary for the adequacy of the management bodies of the E.E. FARMAC, with a view to a management based on criteria of professionalism, transparency and accountability”.
By Adérito CaldeiraSource: A Verdade
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