The President of the Republic of Mozambique, Filipe Nyusi, promulgated the law creating the Sovereign Fund of Mozambique (FSM), approved by Parliament on December 15, 2023. The FSM will be financed by revenues generated from the export of natural gas and will have the Bank of Mozambique as its operational manager.
According to an official statement, President Nyusi promulgated the law after verifying that it did not contravene the country’s Fundamental Law. The proposal to create the FSM, presented by the government, received 165 votes in favor from the Mozambique Liberation Front (Frelimo) in a final vote, while 39 opposition MPs (Mozambican National Resistance – Renamo and Mozambique Democratic Movement – MDM) voted against.
The Minister of Economy and Finance, Max Tonela, explained that projections indicate that annual gas exports could reach around 91.7 billion dollars over the life cycle of the project. In this scenario, annual revenues for the state will peak in the 2040s, exceeding 6 billion dollars a year.
The WSF will be made up of revenues from the production of liquefied natural gas from offshore areas 1 and 4 of the Rovuma basin, from future oil and natural gas development and production projects, as well as from the return on investment from its revenues.
With the enactment of this law, Mozambique is taking an important step in harnessing the country’s natural resources to boost its economic and financial development.
