Maputo, May 15, 2026 (Lusa) - Mozambique’s hydropower company Hidroelectrica de Cahora Bassa (HCB) approved the purchase of a 25.2% stake in LAM, the national flag carrier, as part of a restructuring process, followed by insurance company Emose and rail and port operator CFM with 15.4% each.
The 2025 State General Account, which is the government's annual financial report, shows HCB approved a $36 million (€30.8 million) investment and the creation of Fly Moz, an entity that aims to "secure funding for LAM."
Two other public companies invested and entered the airline's share capital during this restructuring process, which Mozambique's government approved in 2025.
The State General Account notes that Emose approved a $22 million (€18.8 million) investment, "taking a 15.4% stake in LAM's shareholder structure", matching CFM’s investment.
The document also notes the state directly subsidised the airline with 255.4 million meticais (€3.4 million) in 2025.
The government announced plans in 2025 to sell 91% of LAM's share capital, but these three transactions only total 56%.
The International Monetary Fund (IMF) warned in February about the risks of diverting funds from "critical infrastructure" due to capital injections from three "profitable" state-owned companies that are becoming shareholders in LAM.
"Planned investments in LAM by three profitable state-owned companies represent risks of diverting resources from critical infrastructure. Transactions between the government and state-owned companies (for example, transfers, dividends) should be carried out through the Budget," the IMF report states.
The report includes dozens of recommendations for Mozambique after concluding regular consultations with the country.
Mozambique's transport minister, João Matlombe, said last November that three public companies would inject $130 million (€110.4 million) to recapitalise LAM and that 80 workers were leaving as part of the state airline's restructuring.
The minister shared information with MPs in parliament about the LAM’s restructuring process.
He revealed that the government's February 2025 decision to sell 91% of the share capital to state-owned companies HCB, CFM, and Emose stipulated that the three entities would pay that amount.
The IMF stated in its recommendation document approved on 13 February that "a transparent strategy is essential to improve LAM's efficiency and ensure that investments are based on rigorous cost-benefit analyses."
"State-owned companies with persistent negative performance must be restructured and state guarantees to these companies should only be extended under stricter criteria and supervision," the document added regarding the State Business Sector.
The minister acknowledged in parliament in November that the goal was "to recapitalise the company, restructure operations and acquire new aircraft."
"The new shareholders HCB, CFM, Emose and other public funds reinforce the strategic and national character of the company, maintaining state control and ensuring LAM's orientation in the service of the public interest," the minister explained.
He revealed the value of the sale operation for the first time, which was set at $130 million.
PVJ/LYT // ADB.
Lusa
