Mozambique introduces management contracts for State-owned companies

The managers of state-owned companies must comply with a management contract in their activity starting from 2018, according to information released during the annual planning meeting of the Mozambican State Stakeholding Management Institute (Igepe).

According to the information, quoted by the Mozambican press, there will be performance targets and objectives for all the investing companies and also for each of the members of the boards of directors.

Raimundo Matule, executive director of Igepe, said these targets will be the basis of the performance evaluation, first of the company as a whole and then of each member of the board of directors of the production units.

This means, he continued, that each financial manager will have objectives and goals, as will the commercial sector and other management staff of state-owned companies.

The annual meeting also addressed the restructuring of the companies that make up the Igepe portfolio – a total of 99 companies, of which 43 are in operation and the rest in liquidation and dissolution.

Economy and Finance Minister Adriano Maleiane said that state-owned companies have to improve their performance, become competitive and be a source of income for the tax administration and stop being a “burden” on the state treasury.

Source: Macauhub

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