Mozambican state plans to sell stakes in 10 companies soon

6 April 2011

Maputo, Mozambique, 6 April – The process to prepare the sale of 10 of the 35 companies, whose State stakes are available for sale in the short term, is at an advanced stage, according to Mozambican newspaper Notícias.

Citing a source from state holding company, Igepe, the paper said that the company hired to draw up the studies that would guide the process of selling the State’s stakes in the ten companies recently finished its work.

After a decision from the Igepe board, the process is due to be submitted to the government for approval of the terms and conditions of sale, with the source cited by the newspaper noting that this phase was expected to be concluded soon.

The companies available include Sociedade Gráfica de Moçambique (Cegraf), cotton company Companhia Algodoeira de Nampula, road and bridge builder Empresa de Construção e Manutenção de Estradas e Pontes, equipment rental company Empresa de Aluguer de Equipamentos, factory Fábrica de Roscados de Moçambique, Hotel Inhassoro, rubber manufacturer Mabor and textile company Riopele Têxteis.

Under the terms of Igepe’s Strategic Plan, which is expected to be implemented by 2014, the State is to gradually sell of its stakes in what are considered to be non-strategic areas, thus promoting the participation of the private sector.

Up until 2010, of the around 130 companies in which the State owned a stake just 41 percent were fully operational, 32 percent were operating at a reduced level, whilst the remainder were practically at a standstill, and partners are being sought to re-launch them.

Of the portfolio of companies, just 10 bring significant dividends to the state Treasury, notably beer maker Cervejas de Moçambique (CdM), Coca-Cola, Silos e Terminal Graneleiro da Matola (Stema) and aluminium foundry Mozal. (macauhub)