Mozambican Sovereign Fund must have independent management

28 March 2019

The Sovereign Fund to be set up in Mozambique with revenues from natural gas exploration in the north of the country should operate independently, said President Filipe Nyusi.

“The Sovereign Fund should operate independently, in financial and operational terms, with transparency, predictability and in the strictest compliance with the law,” said the head of state.

Nyusi was speaking at a seminar organised by the Bank of Mozambique, in partnership with the International Monetary Fund (IMF), to gather international experiences on the various models of utilisation of revenues from the exploration of natural gas deposits.

The President, quoted by daily newspaper O País, recalled the experience gained on recent visits to Norway and Mauritius, whose sovereign fund models proved to be viable in terms of saving revenues from the exploration of natural resources and benefits to the population.

The head of state said that it is “crucial” to set a fixed percentage of revenue to be channeled annually into the State Budget because it makes it possible to secure the necessary investments to reduce the current infrastructure deficit and improve the living conditions of populations.

With the Final Investment Decision (FID) for areas 1 and 4 of the Rovuma basin coming during the first half of the year, the President of the Republic said that “it is the right moment to begin a deep reflection,” on the income from this industry. (Macauhub)