Mozambican state companies face financial crisis

8 May 2018

Twenty majority state-owned Mozambican companies are facing a financial crisis, said on Monday in Maputo the chair of the Board of Directors of the State Holdings Management Institute (IGEPE), Ana Isabel Coanai, who added that the government is having difficulty in making capital investments in these companies.

Ana Isabel Coanai, on the sidelines of a meeting that debated the legislation of the state’s business sector, also said that the government is looking for entities that want to invest in these companies, “under the restructuring plan that is already underway.”

The first phase of the restructuring plan will be marked by the merger of telecommunications companies Moçambique Celular (Mcel) and Telecomunicações de Moçambique, two of the companies that have experienced financial crises in recent years.

“We have already assessed the two companies and the intention is for the process to be completed by the end of this year,” said Coanai, who pointed to bank debt as one of the main challenges facing Mcel and Telecomunicações de Moçambique. (macauhub)