Assessing The Performance Of Public Companies In Mozambique For The Last Decade.

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Lila Gustavo


For the last ten years, the road to success for state owned enterprises has been an arduous task fraught with high risks and uncertainty. Sluggish international markets, depreciation of the US dollar against the metical, outdated infrastructure, dearth of quality management and the existence of half of the population in poverty contributes to the current situation. Barring Ports and Railways of Mozambique (CFM), no other public company has achieved consistent growth and profits in the last decade. The roller coaster performance of Electricidade De Mozambique (EDM)is a testimony to the slow pace of electrification, irregular power distribution, compounded by power theft which being a major concern and the primary reason for revenue loss. The merger of two loss-making government entities, Mozambican Telecommunication (TDM) and its subsidiary Mozambique Cellular, resulted in the creation of Mozambique Telecom (Tmcel) which has yet to start 4G service and prove itself a worthycompetitor to the private players by adopting technological advancements. Possessing a fleet in single digits and having faced a ban for safety concerns by the European Union, the flagship carrier Mozambique Airlines (LAM) has been grappling with debts and losses since the past many years which has resulted in the constant restructuring of its management without any positive outcomes.To add to the state budget and offer standard services to its consumers, public companies in Mozambique need to rethink their strategy and prioritise their objectives to survive.

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