Mozambique to sell stake in Tmcel to attract investors

The Mozambican government has authorized the sale of a portion of its stake in the telecommunications operator Tmcel to attract new investors. The decision, made by the Council of Ministers, aims to revitalize the company, which has faced significant operational and financial difficulties for several years.

To facilitate the process, the Ministry overseeing the communications sector will form a technical team to negotiate the terms and conditions of the sale through private negotiations. While the government has not yet specified the exact percentage of shares to be sold or identified potential investors, it is currently the majority shareholder, holding approximately 66% of the operator.

Tmcel was formed in December 2018 following the merger of Telecomunicações de Moçambique (TDM) and Mcel. Despite its historical importance in the national sector and its maintenance of critical infrastructure, including fiber optics, the company has struggled with high debt levels and negative financial results. The government views this divestment as a mechanism to provide the company with the vitality needed to continue providing essential communication services across the country.