Public and state-owned companies accounted for 3.2 per cent of Mozambique’s Gross Domestic Product (GDP) at the end of 2023, an increase of 0.4 percentage points compared to 2020, according to an official report on fiscal risks for 2025, released by the Ministry of Economy and Finance, quoted by Lusa.
The document emphasises that the growth in the weight of the state business sector (SEE) in the economy is partly the result of the economic recovery following the covid-19 pandemic.
Among the main sources of revenue for public companies are taxes paid, which totalled around 20 billion meticals (254.3 million dollars) a year, representing most of the SEE’s contributions.
In addition to taxes, the dividends paid by public companies also grew significantly, reaching 8.9 billion meticals (113 million dollars) in 2023, which represents a 14 per cent increase on the previous year.
The companies that contributed the most were Hidroeléctrica de Cahora Bassa, with 4.6 billion meticals (58.5 million dollars), and Portos e Caminhos-de-Ferro de Moçambique (CFM), with 1.8 billion meticals (22.9 million dollars).
On the other hand, subsidies granted by the state to public companies to support the social component of their activities fell by around 1.2 billion meticals (15.2 million dollars) in 2023, compared to the previous year.
These subsidies, which represented 0.14 per cent of GDP, went mainly to Electricidade de Moçambique (EDM), Radio Moçambique, Televisão de Moçambique and Linhas Aéreas de Moçambique.
The report emphasises that despite the reduction in subsidies, the state business sector continues to be an important source of revenue for the government, through the payment of taxes and dividends, while at the same time benefiting from support to maintain its essential operations
