The government of Mozambique is having to recapitalise the struggling state-owned mobile operator mCel to keep the business afloat. Local newspaper Noticias reports that mCel is ‘currently experiencing some financial difficulties’ and the government will ‘trigger funding mechanisms for [its] recapitalisation’. There has been some speculation that the government could sell off its interest in the country’s wireless market leader, which is owned via national fixed network operator Telecomunicacoes de Mocambique (TDM), though the state says that this will be a ‘last resort’. According to TeleGeography’s GlobalComms Database, mCel competes with two players with international backing, Vodacom Mozambique, whose South African parent company is majority-owned by UK-based Vodafone, and Movitel, which is 70%-owned by Viettel of Vietnam.
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