The Mozambican government has approved the sale of a 91% stake in LAM Mozambique Airlines to three state-owned enterprises. The deal, worth $130 million, involves Cahora Bassa Hydroelectric Plant, Mozambique Ports and Railways, and the Mozambican Insurance Company.
Government spokesperson Inocencio Impissa announced this decision at a press briefing in Maputo. The sale aims to restructure the airline and purchase eight new aircraft. Impissa expressed confidence that these companies, with their autonomous operations and private sector-like management styles, will bring international business standards to LAM.
The three companies, although state-owned, will report to the government on LAM’s recovery progress. Over the past decade, LAM has faced severe financial difficulties, sometimes operating with just two aircraft. Corruption in service acquisitions has worsened the crisis, leading to a debt of over $230 million, according to Mozambique’s state news agency AIM.
This strategic sale is a crucial step to restore LAM’s efficiency and financial health. By leveraging the expertise of the acquiring companies, the government aims to improve the airline’s services, benefiting Mozambique’s aviation sector and passengers.