The proposed Economic and Social Plan and State Budget (PESOE) for 2025 estimates that the fiscal exposure of the two main public companies in the aviation sector could rise to 1.2% of Gross Domestic Product (GDP), arguing that the situation is a cause for concern for the new government that took office in January.
‘State-owned enterprises (SEE) have faced financial challenges, particularly Aeroportos de Moçambique (ADM) and Linhas Aéreas de Moçambique (LAM), which have demonstrated a failure to meet their financial obligations,’ warns the first budget proposal drawn up by Daniel Chapo’s executive.
According to the document, for this year ‘the fiscal exposure associated with the two companies is estimated at around 1.2% of GDP,’ adding that there is a need to reform the SEE under the country’s ‘macroeconomic stability’ programme.
According to PESOE, there are 11 public companies in Mozambique, seven exclusively state-owned companies and nine with minority shareholdings in liquidation.
Last year, Aeroportos de Moçambique (ADM) announced that it was investing in the modernisation of airport services in several provinces of the country, with the aim of responding to current market demands.
As for LAM, the carrier has been facing operational problems for several years related to a reduced fleet and lack of investment, with some non-fatal incidents reported, which experts attribute to poor aircraft maintenance.
Data show that in 2021 alone, LAM recorded a loss of more than 1.4 billion meticals (21.7 million dollars), in 2022 with 448.6 million meticals (6.9 million dollars), in 2023 with 3.9 billion meticals (60.5 million dollars) and in 2024 with 2.2 billion meticals (34.1 million dollars).
