The government said on the morning of Wednesday, May 10, to members of parliament that the situation of mobile phone company Mozambique Telecom (Tmcel) is more complex than anticipated and its solution may involve the sale of 80 percent of its assets.
According to the Minister of Transport and Communications, Mateus Magala, Tmcel currently has a debt of over US$400 million with a tendency to worsen, as it is losing market share, since it operates in fierce competition.
According to what was stated in a recent report, the company faces major challenges and may be on the verge of collapse and insolvency. The applicable solution would be to find a strategic partner in a multinational operator. “But its viability would only result from the sale of 80% of the shares, and if the Government took over the debt and reduced the workforce by 60%,” said Mateus Magala, during a Government response session to MPs in Parliament.
Last month, the Government decided for Tmcel to pass to the responsibility of the Institute for the Management of State Participations (IGEPE), pending the arrival of a management commission to take over its restructuring.
For Mateus Magala, the commission will have the mission to reverse the negative results of the mobile phone company that is majority state-owned, stressing that soon the new management model will be defined.
Tmcel is a public limited company resulting from the merger between Telecomunicações de Moçambique S.A. (TDM) and Moçambique Celular S.A. (Mcel). Its main objective is to provide telecommunications services throughout the national territory.
