Mozambican Prime Minister Carlos Agostinho do Rosario says the government will speed up the recovery plan of national airline, LAM Mozambique Airlines, as the recovery of the company is a priority.
The plan includes finding LAM a strategic partner to help curb its debt crisis.
Last week, LAM had its entire board sacked after the carrier cancelled flights because of financial difficulties that meant it could not pay for fuel.
As a result, the Institute of State Holdings Management, a government entity that manages public companies, will appoint a committee to temporarily manage LAM, following the dissolution of the board.
Mozambique is also set to introduce new competition rules on 28 August 2018, according to legislation recently approved by the government. The rules aims to protect liberalization of air transport services in Mozambique and punish those take part in anti-competitive practices. The new rules will also prohibit the abuse of a dominant position by one or more airlines.