Maputo, Feb. 25, 2026 (Lusa) - The International Monetary Fund (IMF) warns of the risks of misappropriation of funds from "critical infrastructure" in light of the capital injection of three "profitable" Mozambican state-owned companies, which are now shareholders in the airline LAM.
"The planned investments in LAM by three profitable state-owned companies pose risks of misappropriation of critical infrastructure resources. Transactions between the government and state-owned enterprises (e.g., transfers, dividends) should be carried out through the budget," reads the IMF report, which includes dozens of recommendations to Mozambique after concluding regular consultations with the country.
The Mozambican Minister of Transport said last November that three public companies will inject $130 million (€110.4 million) into LAM's recapitalisation and that 80 workers are leaving as part of the restructuring of the state-owned airline.
When providing information to MPs in parliament on the restructuring process of Linhas Aéreas de Moçambique (LAM), owned by the state, João Matlombe revealed that the government's decision in February 2025 to sell 91% of the share capital to the state-owned companies Hidroelétrica de Cahora Bassa (HCB), Caminhos de Ferro de Moçambique (CFM) and Empresa Moçambicana de Seguros (Emose), provides for the three companies to pay that amount.
The IMF, in its document with recommendations approved on 13 February, states that "a transparent strategy is essential to improve LAM's efficiency and said that investments are based on rigorous cost-benefit analyses".
"State-owned enterprises with persistent poor performance should be restructured, and state guarantees to these enterprises should only be extended subject to stricter criteria and supervision," the document also points out, regarding the State Enterprise Sector (SEE).
"It is crucial to address the fiscal risks of state-owned enterprises," says the IMF, noting that contingent liabilities of state-owned enterprises represented 3.5% of Mozambique's gross domestic product (GDP) in 2024.
The fund adds that LAM, telecommunications operator TMCEL and Aeroportos de Moçambique "are the state-owned enterprises most likely to generate contingent liabilities, due to low liquidity, high indebtedness and negative profitability."
In parliament in November, Minister João Matlobme stated that the objective is to "recapitalise the company, restructure operations and acquire new aircraft".
"The new shareholders HCB, CFM, EMOSE and other public funds reinforce the strategic and national character of the company, maintaining state control and saying that LAM serves the public interest," the minister explained, revealing for the first time the value of the sale, set at $130 million.
The minister said that over the last ten years, LAM "has faced persistent economic and financial difficulties," mainly resulting from "high indebtedness to banks and suppliers," as well as "very high operating costs, particularly for leasing, maintenance and fuel," and a "staff structure that is not in line with the actual volume of operations."
On the other hand, he added that LAM recorded negative operating results of 4.6 billion meticais (€61.9 million) in 2020, reduced to 2.6 billion meticais (€35 million) in 2023.
"Rental, maintenance and fuel costs absorbed, on average, 84% of revenues, and total debt exceeds 13 billion meticais (€174.9 million), compromising the company's liquidity. Given this situation, and after several attempts to recover the company's critical situation, the Government decided to intervene with structural measures," he pointed out.
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