Mozambique offers “discount” to owners of privatized companies

2 August 2006

Maputo, Mozambique, 02 Aug – The Mozambican government has exempted the owners of privatized companies from paying up to one quarter of the value for which they were sold, according to local press reports.

The exemption applies to “national adjudicators and managers, technicians and workers,” who on the date the government decree, have paid 75 percent or more of the value of privatization.

The “discount” is also applicable to companies that within a two-year period pay three quarters or more of their debt.

The decision is part of decree 23/2006, approved on May 30, Mozambican daily newspaper Notícias reported.

The national director for industry, Sérgio Macamo, told the paper that the move was intended to support the expansion and recovery of privatized companies, many of which were currently having operating difficulties.

Trade unions in Mozambique have said that the measure is insufficient, considering the problems felt in terms of obsolete equipment and the lack of competitiveness of many privatized companies. (macauhub)