Government assumes Tmcel and LAM financial health is fragile

Governo assume que saúde financeira Tmcel e LAM é frágil

The Minister of Transport and Communications, Mateus Magala, admitted yesterday in parliament that the companies Tmcel and Linhas Aéreas de Moçambique (LAM) are currently in fragile health.

Magala explained that a reform process has already begun and that it is informed by a number of studies before deciding on the options that should be taken.

"We don't have any options yet, but they range from privatization to socialization of the companies, we don't know which option is economically, socially and politically correct; we have asked for studies in that direction," Magala explained.

The minister said he believes that by the end of this year or early 2023 there will be results that better inform or equip for decision making what to do with these companies to turn them into revenue centers rather than the cost centers they are today.

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