Forty state-owned companies in Mozambique will be sold to the private sector and/or closed by the end of 2017 because they are not financial viable, according to a decision by the State Holdings Management Institute (Igepe).

Daily newspaper Notícias, reporting that the companies are part of a group of 64 companies that can no longer compete in the market, said Igepe’s decision would affect 20 companies by the end of this year, including tyre company Mabor, which will be sold to private investors.

The business sector of the Mozambican state is currently made up of 13 public companies, 109 subsidiaries and two state companies, 45 of which are viable and 64 others are in the process of disposal, liquidation and dissolution, the minister of Economy and Finance, Adriano Maleiane said at the opening session of the 21st Igepe Consultative Council.

“We plan to improve the State’s portfolio of investments, streamline it and transform it into a more robust and quality-led portfolio, which is able to compete with other companies in the market, both in terms of income and quality and corporate governance for transparency,” said the minister.

Maleiane said six companies have already been assessed and restructuring measures adopted, including Mozambican airline LAM, telecommunications company and adopted six companies restructuring measures, including Mozambican airline LAM, telecommunications company Moçambique Celular, silo and terminal company STEMA – Silos e Terminal Graneleiro da Matola, airport manager Aeroportos de Moçambique and postal service Correios de Moçambique.

Source: macauhub