The Mozambican government is set to sell 91% of its shares in LAM to raise about 130 million US dollars. The funds will be used to acquire eight aircraft and restructure the airline. This decision, approved by the Council of Ministers, also involves other state-owned companies acquiring shares.
The Mozambican government has made a decisive move to divest itself of 91% of its shares in the national airline, Mozambique Airlines (LAM). This decision was sanctioned by the Council of Ministers during their recent meeting. They have also granted approval for the state-owned entities including Ports and Railways of Mozambique, Cahora Bassa Hydroelectric Plant, and EMOSE insurance to purchase these shares.
The Council’s spokesperson, Inocêncio Impissa, indicated that the proceeds from this sale are projected to be directed towards the acquisition of eight new aircraft. Additionally, a portion of these funds will facilitate efforts to restructure the flag carrier, aiming to enhance its operational capacity.
Through the disposal of 91% of LAM’s shares, the government anticipates raising approximately 130 million US dollars. This initiative reflects a strategic move to stabilize the airline’s financial standing and innovate its service offerings by introducing newer aircraft and modern practices.
The flag carrier of Mozambique, LAM, has faced various challenges that have impacted its financial viability and service efficiency over the years. Government ownership has often led to bureaucratic inefficiencies, prompting discussions on privatization or reduced government stakes. This decision to sell a significant portion of LAM underscores an attempt by the government to revitalize the aircraft fleet and improve management practices through capital infusion from private channels.
In conclusion, the Mozambican government’s decision to sell 91% of its shares in LAM represents a strategic effort to revitalize its national airline. By potentially raising 130 million US dollars, the funds will aid in acquiring new aircraft and restructuring the company to enhance its competitiveness and operational efficiency.
Original Source: clubofmozambique.com
