The Mozambican government injected 3.7 billion meticais (€52.2 million) from 2020 to 2023 to financially rescue two public aviation companies, Aeroportos de Moçambique (ADM) and Linhas Aéreas de Moçambique (LAM), according to an official report released on September 16. The report on fiscal risks for 2025 from the Ministry of Economy and Finance warns that these companies could pose a fiscal risk estimated at 1.2% of GDP by 2025.
The report also highlights that low profitability and liquidity issues in some state-owned enterprises (SEE) have led to delayed payments, potentially adding pressure to the state budget. In 2023, ADM, LAM, and the state-controlled telecom operator TmCel delayed payments to creditors amounting to 3.95 billion meticais (€55.7 million).
Mozambique’s total state-owned enterprise debt dropped by nearly 2% in the first quarter of 2023 to $601.8 million (€561 million), though external debt slightly increased by 0.36% to $274.5 million (€256.2 million). Domestic debt fell by 3.3% to 20.9 billion meticais (€305.5 million) during the same period.
The state oil distributor Petromoc alone reduced its domestic debt by 512.5 million meticais (7.5 million euros) in three months, maintaining a total stock of 113.5 million meticais (1.6 million euros).
The domestic debt contracted by companies in which the Mozambican state has a stake was led at the end of March by the flagship company LAM, with 6,828 million meticais (100 million euros), an increase of 0.9% in three months.