The Minister of Economy and Finance of Mozambique, Max Tonela, admitted Friday that the state-owned carrier Linhas Aéreas de Moçambique (LAM) and mobile phone company Tmcel need restructuring to re-enter the path of sustainability.
According to a source, Mr. Tonela outlined the panorama of the two strategic companies, during a meeting with the director of the World Bank for Mozambique, Idah Pswarayi-Riddihough.
“We have been discussing the case of the restructuring of LAM and Tmcel”, emphasised Mr.Tonela without giving any further details.
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The changes in the two companies, he continued, are part of a restructuring strategy for the entire portfolio of State holdings, aiming at the financial recovery of those facing difficulties.
The Mozambican state-owned carrier has faced operational problems in recent years related to a reduced fleet and lack of investment, while Tmcel is struggling with cash flow problems caused by the loss of weight in the mobile phone market.
The complex situation in the state-controlled communications sector led to the merger of the former Mcel mobile service with TDM fixed service, resulting in the new company, Tmcel.