IMF Staff Country Reports

This Selected Issues paper discusses current situation and policy options related to state-owned enterprises (SOE) in Mozambique. SOEs play an important role in the Mozambican economy providing much-needed utilities, and also regarding employment and investment dynamics. A first step is to enhance timely and regular collection of data that is easily accessible to better assess the performance of SOEs and raise awareness about associated fiscal costs and risks. Enhancing governance and transparency in the SOE sector remains essential to strengthen performance, oversight and accountability, aimed at containing the associated costs and risks. Besides the consolidated accounts, there is a need for action to regularly publish granular data on SOEs to improve transparency and accessibility. It is also important to improve transparency in the SOEs’ procurement processes to address vulnerabilities to corruption and improve public spending efficiency. Undertaking a comprehensive analysis of the SOE sector is important to set a holistic strategy for prioritizing and sequencing needed reforms going forward.