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Mozambique Airlines (LAM) remains heavily dependent on public resources, having received around 5.4 billion meticais in financial support between 2022 and 2025, according to the Ministry of Finance’s 2027 Fiscal Risk Report.
The document warns that the State-Owned Enterprise Sector continues to represent a significant source of risk to public finances due to the financial weaknesses of some companies and the liabilities assumed by the State.
According to the report, LAM absorbed the largest share of State financial support during the period under review, amounting to more than €78 million.
In 2025 alone, financial support provided to the airline and Airports of Mozambique (ADM) totalled around 2.1 billion meticais.
The Government says these figures reflect the companies’ high dependence on public resources and demonstrate the materialisation of fiscal risks associated with their financial difficulties.
LAM is currently undergoing a restructuring process following several years marked by operational difficulties, limited aircraft availability, lack of investment, flight delays and cancellations.
As part of the restructuring, Hidroeléctrica de Cahora Bassa (HCB) approved the acquisition of a 25.2% stake in the airline in 2025.
Mozambique Insurance Company (EMOSE) and Mozambique Ports and Railways (CFM) each acquired a 15.4% stake.
The Fiscal Risk Report also warns of an increase in contingent liabilities among State-owned companies, which rose by 4% in 2025, with the largest concentration recorded at Airports of Mozambique and Mozambique Ports and Railways.
ADM recorded the highest level of liabilities in the State-Owned Enterprise Sector, estimated at 1.6 billion meticais, a situation linked to persistent liquidity constraints and rising financial costs.
The document also points to a decline in the fiscal contribution of State-owned companies, from 31.2 billion meticais in 2023 to 24.4 billion meticais in 2024, representing a nominal decrease of 21.8%.
The Government warns that public finances remain exposed to several risks, including high public debt, volatility in fuel prices, exchange-rate fluctuations, natural disasters and the financial weaknesses of State-owned companies.
Against this backdrop, the Government advocates stronger fiscal risk management, improved financial performance across the State-Owned Enterprise Sector and reduced State exposure to companies that remain dependent on public financial support.
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