Proposal for Mozambique Sovereign Fund due to be completed in 2020

18 December 2019

The preparation of a proposal for the creation of a Mozambican sovereign fund financed with revenues from the exploration of natural gas will be completed in 2020, said on Thursday in Maputo the governor of the Bank of Mozambique.

Rogério Zandamela, speaking at the closing session of the central bank’s financial year said that the “technical papers for the adoption of a transparent model for the management of revenues from mineral resources,” will result in a proposal that will serve as the basis for discussions at a political level and with all stakeholders, including civil society.

This step comes after a long period of public debate about the mechanisms for management and saving of funds that have been deposited in the public accounts as part of the exploration of natural resources, particularly minerals and oil and gas.

Mozambique has natural gas reserves estimated at around 270 trillion cubic feet, and although the exploration of resources discovered in the Rovuma basin is expected to start in 2022/2023, South African group Sasol has been extracting natural gas in Temane, Pande, and Inhassoro, in Inhambane province, for many years. (macauhub)