More state-owned companies may be subject to restructuring in the near future with a view to improving their performance, either through total or partial privatisation, or by other forms of intervention.
A few days ago, the State Holdings Management Institute (IGEPE) announced the hiring of a company to conduct a study for the restructuring of four companies that are part of the state’s business sector portfolio. These are the Mozambican Insurance Company (EMOSE), the Correios de Moçambique (Post Office), the Sociedade de Gestão Imobiliária (DOMUS) and the Matola Silos and Grain Terminal (STEMA).
Raimundo Matule, executive director of the Business Control department at IGEPE, says the study should be completed by December of this year, though there are bureaucratic factors which may delay it.
“At this point, it is difficult to specify when the study will be completed, but we hope that it will be finished by December. We know that the awarding process takes time, because of the bureaucratic procedures that must be followed,” explained Matule.
The IGEPE administrator did not advance to Noticias when any other companies may be subject to restructuring, but did note that this was not the first time that the state had taken such a step.
“We have already had restructurings at Linhas Aéreas de Moçambique (LAM), Petróleos de Moçambique (Petromoc) and at Telecomunicações de Moçambique and Mcel, culminating in the merger of the last two,” he explained, noting that restructuring did not necessarily mean privatisation.
He said that, in the specific case of EMOSE, STEMA, DOMUS and Correios de Moçambique, the study – to be conducted by the ‘Intellica’ consultancy – would determine the type of intervention to be carried out in each of the companies.
Matule explained that, depending on the results and recommendations of the study, restructuring could be undertaken in the human resources, financial or even in operational fields. “But the state could also decide to sell part or all of its participation. It could also decide to liquidate the company,” he added.
Created in 2001, the IGEPE has a portfolio made up of public companies and others with state participation, divided between majority and minority shareholdings. Its main mission is to manage the state’s financial holdings through the process of restructuring the state business sector.
In addition to being responsible for managing subsidiary companies, the IGEPE is also a provider of technical services and of process management monitoring with significant impact on state matters.