Government of Mozambique will examine the future of 20 public companies

7 June 2016

The public debt crisis in Mozambique has destabilised the government’s activity and the economy and will force restructuring, privatisation or closure of 20 public companies, said Monday in Maputo the President of Mozambique.

In a press conference to mark the closure of the open presidency in Maputo last weekend, Filipe Nyusi said the “increase in the country’s public debt is, whether we like it or not, destabilising the normal functioning of government.”

“It is a restructuring or re-evaluation of the existence [of public enterprises], such as Aeroportos de Moçambique, which despite being a viable company, has a lot of fat [to be trimmed] so it needs to undergo restructuring, a process in which the government has decided to include the private sector,” said Nyusi.

Last week, airport manager Aeroportos de Moçambique acknowledged a debt of US$500 million, guaranteed by the state, and that it intended to restructure it for the company to be “more profitable, reduce its financial difficulties and start giving dividends to the State.” (macauhub/MZ)