The Mozambican carrier LAM has absorbed more than EUR 78 million in public support since 2022, according to a government document that points the state business sector among the main sources of risk for public finances.
© Lusa
22/09/2026
by
Lusa
The alert is contained in the Tax Risk Report 2027, the Ministry of Finance and to which Lusa had access today, which considers that the State Business Sector (SEE) continues to represent “a worrying source of tax exposure”, due to the financial weaknesses of some companies and the direct and contingent responsibilities assumed by the State.
According to the document, LAM – which just over a year ago started a deep restructuring process – during the period 2022 to 2025 absorbed most of the financial contributions, a total of 5,400 million meticals (EUR 78.3 million), while support to Mozambique’s carrier and airports (AMF) amounted to around 2,100 million meticals (30.4 million) only in 2025.
The report adds that these support reflects “the high dependence of these companies on public resources” and highlights the materialisation of fiscal risks associated with their financial weaknesses.
The government also notes that the contingent liabilities of the public business sector grew by 4% in 2025, with a higher concentration on the WMD and the Mozambican Railways (CFM), expanding the financial exposure of the State.
Only ADM recorded the largest volume of liabilities in the State’s business sector, amounting to 1.6 billion meticais (EUR 23.2 million), a result that the report associates with the persistence of liquidity weaknesses and increased financial costs.
According to the document, the tax contribution of the State’s business sector decreased from EUR 31.2 billion (EUR 452.2 million) in 2023 to EUR 24.4 billion (EUR 353.6 million) in 2024, a reduction of about 21.8% in nominal terms.
LAM is undergoing a deep restructuring process, after several years marked by operational difficulties associated with the small size of the fleet and the lack of investment, still marked by constant criticisms of delays and cancellations of flights for operational reasons.
The Cahora Bassa Hydroelectric (HCB) approved in 2025 the acquisition of 25.2% of LAM's capital in the framework of the restructuring of the airline, followed by the Mozambican Insurance Company (Emose) and the Mozambican Railways (CFM), each with 15.4%.
The Tax Risk Report 2027 warns that Mozambican public finances face a context of “high economic and fiscal uncertainty”, marked by the volatility of international oil prices, geopolitical tensions, pressure on the exchange market, high public debt, exposure to natural disasters and financial weaknesses of the state’s business sector.
It adds that these factors can compromise budget execution, revenue collection and fiscal sustainability, while considering that the sustainability of public finances will depend on the ability to anticipate and mitigate these risks. The evolution of public debt, fuel price shocks, exchange risk, slowdown in economic growth, natural disasters and liabilities associated with public enterprises are the main threats.
The government therefore advocates strengthening tax risk management, curbing debt vulnerabilities, improving the financial performance of the state’s business sector and strengthening resilience to climate and economic shocks.