The Minister of Economy and Finance admitted in Parliament on Wednesday that the debts of communications company Tmcel and Aeroportos de Moçambique (ADM) constitute a fiscal risk for the state.

Max Tonela was speaking in response to a question from the benches of the Democratic Movement of Mozambique (MDM), the third largest party, on the "health of the state business sector", during the question time session with the government.

Quoted by DW, the government official stated that: "although there has been a reduction in debt of around 3.5 billion meticais, the company's debt levels continue to represent a fiscal risk for the state", referring to the state of the Mozambican mobile and fixed telephony company's accounts.

According to the government official, Tmcel's financial situation has weakened in recent years as a result of low productivity, with a high loss of customers, caused by the weakness of its technological infrastructure.

"The company has not been the subject of any investment in recent years," he continued.

Meanwhile, with regard to Aeroportos de Moçambique (AdM), Tonela said that the company is also a source of fiscal risk for the state, because the weight of the debt contracted for the construction and expansion of the Nacala and Maputo airports, respectively, is significant.

With regard to Mozambique Airlines (LAM), the Minister of Economy and Finance pointed out that the carrier is making "some gains", with a new management model, after the "challenges it has faced over the last ten years, with a worsening trend".

The government hired the South African company Fly Modern Ark as the best short-term option to support LAM in stabilizing its operations, he continued.

This option resulted in an increase in the aircraft fleet, improving its capacity to respond to market demand, frequencies and the reopening of new regional routes and a reduction in domestic fares by 30%.

"Despite the good results achieved with the reforms underway at LAM, we recognize that the company has not yet reached the desired level of efficiency. The government will continue to work to ensure reforms aimed at the company's sustainability and controlling the fiscal risks associated with its operation," he emphasized.