CPMZ’s stability and success in continuous operations for almost 40 years is the result of a sound governance model. In an exemplary partnership between the public and private sector, the company’s shareholder structure has been limited throughout our history to just two shareholders: the State of Mozambique and SMI – Sociedade Moçambicana de Investimentos, SA, which represents the private investors.
CPMZ: professional management, with the public interest at heart.

One of the factors that has most contributed to the company’s success over the years has been its stable governance and the excellent institutional relationship between the private shareholder and the State of Mozambique. In this governance model, public and private shares are allocated in almost identical portions, with SMI having a small majority of CPMZ’s capital and its Board of Directors.

SMI is responsible for management, in permanent interaction with the state shareholder, providing a response for public interests and economic and social development challenges, and enabling the pipeline operations to be stringently assured with maximum efficiency.

Fulfilling demand for refined petroleum products to Zimbabwe and creating value in the economy of Mozambique are unwavering priorities for CPMZ’s governance. To guarantee these priorities, the company’s management has worked towards gradually boosting the pipeline’s transport capacity – keeping up with the growth in demand – and market diversification over the many years it has been in business.

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The Board of Directors is responsible for supervising CPMZ and comprises nine directors – one executive director and eight non-executive directors. Mirroring the shareholder structure, five members of the Board of Directors represent the private investors and four represent the Mozambican State. However, the importance of a governance model that respects and incentivises ongoing dialogue between the private sector and the State is clear from the annual rotation of the Presidency of the Board of Directors between representatives of the two shareholders.

In addition to the other duties laid down in the applicable provisions of the law and the company’s articles of association, the Board of Directors is responsible for establishing the Company’s strategic guidelines and its main management policies, as well as for approving the relevant business and investment plans, financing and the annual budget.

Under its articles of association, responsibility for managing the company is allocated to the private sector. This responsibility includes choosing the Executive Director, who is the key link between the Board of Directors and General Management.

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The day-to-day powers to run the company were delegated to the Executive Director and the General Managment by the Board of Directors and include all the management powers necessary for the company to operate smoothly.

Under this delegation of powers, the managers carry out the day-to-day management of CPMZ accompanied and supervised by the Executive Director. They are responsible for implementing the strategic guidelines established by the Board of Directors and for actively contributing to the good performance of the company and the various areas that make up its functional structure.

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