Mozambique Reorganizes State Companies Amid Debt Crisis

MAPUTO, Capital Markets in Africa: Mozambique identified six companies including telecommunications providers Telecomunicacoes de Mocambique and Mocambique Celular Sarl among 20 state-owned entities it plans to reorganize or sell as it battles a debt crisis.

Others are the national airline Linhas Aereas de Mocambique and airport operator Aeroportos de Mocambique, a silos and bulk-terminal company at Matola and postal company Correios de Mocambique, the Finance Ministry said in an e-mailed response to questions from the capital, Maputo.

“Under the restructuring of state-owned enterprises, 20 are considered strategic and viable,” the ministry said. The government may reorganize them through taking on strategic partners, changing management, diversifying products, reducing assets and consolidating operations or streamlining costs, it said.

Source: Bloomberg Business News