Mozambique: Lam Management Challenged to Present Measures to Improve Company's Financial Sustainability

What the report says

Mozambique’s Transport and Logistics Minister João Matlombe has pressed the team overseeing the restructuring of state-owned airline LAM, formerly Mozambique Airlines, to come forward with practical measures to improve performance and financial sustainability. The comments were made at a ministry coordinating council session in Macaneta, in southern Maputo province, according to Agencia de Informacao de Mocambique, which said the minister called for clear timelines, measurable results and stronger accountability.

The government has already brought in three other state-owned companies as shareholders in LAM under the restructuring plan: Hidroelectrica de Cahora Bassa, the rail and port operator CFM, and insurer EMOSE. The article says HCB acquired 25.2 percent of the carrier, while CFM and EMOSE each invested 22 million dollars and took 15.4 percent apiece. Matlombe said the airline must do more than remain operational and should regain the ability to serve the country effectively.

He said the restructuring should cover management, fleet use, operations and passenger services, with a focus on lowering costs, raising revenue and reducing dependence on state support. The minister also linked the airline’s recovery to national connectivity, tourism and access to international markets.

The report adds broader context that LAM has faced a long-running financial crisis, including debts to suppliers that the article places at more than 230 million dollars. It also notes that a 2024 effort led by South African firm Fly Modern Ark did not resolve the airline’s problems.