Mozambique creates Sovereign Fund with initial funding of US$350 million

22 August 2017

The Mozambican government plans to create a sovereign fund that will be financed with tax revenues from the exploration of natural resources, Economy and Finance Minister Adriano Maleiane announced on Monday in Maputo.

The minister said that the initial funding of the sovereign fund will be the US$350 million that Italian group ENI will pay in capital gains tax due on the deal with US group ExxonMobil.

The ExxonMobil group paid US$2.8 billion in cash to the Italian group for a 35.7% stake in ENI East Africa and, through this company, an indirect 25% stake in the Rovuma Area 4 block in northern Mozambique.

Mozambican news agency AIM also reported that the fund will be managed by an autonomous institution, most likely the National Investment Bank, a partnership of the Portuguese government through state-owned Caixa Geral de Depósitos and Moçambican government, through the National Treasury Directorate. (macauhub)