State-owned Ports and Railways of Mozambique (CFM) says in its 2019 annual report that it has been forced to suspend or postpone around 15% of its investments for 2020, worth more than 1 billion meticais.
CFM had expected to invest just over 7 billion meticais of its own funds in 2020, but the negative effects of Covid-19 reduced the figure to just over 6 billion meticais.
The southern region suffered most, with forecast investment cut by almost half. It had expected to receive more than 1.2 billion meticais, but the company’s Board of Directors cut the budget by 46%, to 686.4 million meticais.
The northern division also suffered cuts. Of the 271.6 million meticais expected, the management saw 29% of the amount retained, leaving only 193.5 million meticais.
The CFM expects the Covid-19 pandemic to negatively impact productivity, with reduced transport of people and goods and less cargo handling in ports.
“Depending on the depth and duration of the disruptive impacts, activity and profitability will be affected to a lesser or greater degree. However, based on all the information available to date, including the liquidity and capital situation, as well as the value of assets, it is considered that the principle of continuity of operations remains applicable,” the company’s 2019 annual report and accounts states.
By Evaristo ChilingueSource: Carta de Moçambique