Mozambique’s government is currently in talks with an African operator to secure their participation in the share capital of Movicel, a struggling mobile operator in the country. This move aims to rescue Movicel, which has experienced a significant decline in its customer base and workforce over the past five years. The company also faces substantial debts to the government and suppliers, leading to the shutdown of a significant portion of its network infrastructure and resulting in poor network coverage.
According to reports, negotiations are underway, and a potential deal could be finalized in the coming weeks. To effectively address the network coverage issues, an estimated amount of $100 million would be required to reinstate infrastructure and equipment, focusing on the five main population centers of Cabinda, Luanda, Benguela, Huambo, and Lubango. Additionally, an investment of $50 million would be necessary to revitalize commercial operations, modernize administration, and increase working capital.
The government’s efforts to secure a partnership and inject substantial funds into Movicel are seen as crucial steps towards stabilizing the mobile operator and revitalizing its operations. By addressing the infrastructure and financial challenges, Movicel would have the potential to regain its position as a reliable and competitive player in the Mozambican telecommunications market.
These developments reflect the government’s commitment to support the country’s telecom sector, ensure improved network coverage, and foster a conducive environment for mobile operators to thrive. The successful rescue of Movicel would not only benefit the company but also contribute to the overall development of Mozambique’s telecommunications industry, enhancing connectivity and communication services for the population.