Monday, May 27, 2024

Bank of Mozambique to be confirmed as operational manager of sovereign fund

The Bank of Mozambique (BdM) is about to be confirmed as the operational manager of the Sovereign Fund (FS), according to an agreement to be signed with the government by the end of February. The Ministry of Economy and Finance (MEF) is finalizing a proposal, which will be submitted to the Council of Ministers.

Enilde Sarmento, the MEF’s National Director for Economic Policies and Development, explained that, despite the approval of the law creating the FS by Parliament, a management contract is needed to detail the role of the central bank.

“This instrument will indicate the methods of accountability, the investment processes, the deadlines to be met and the hiring of internal managers,” she said.

All the necessary documents for the operation of the Sovereign Fund are being prepared, including the creation of an Advisory Council. “By the end of February, we will have all the instruments submitted and approved by the Executive,” concluded Sarmento.

The President of the Republic, Filipe Nyusi, promulgated the law creating the SWF on January 8, approved by Parliament on December 15, 2023. The creation proposal received 165 votes in favor from Frelimo, while 39 MPs from Renamo and MDM voted against.

The Fund will be made up of revenues from the production of liquefied natural gas from areas 1 and 4, offshore in the Rovuma basin, from future oil and natural gas development and production projects, as well as from the “return on investment of the revenues” from the Fund.

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