Mozambique’s council of ministers has approved a decree establishing legislation for a sovereign wealth fund.
The fund will be tasked with managing revenues from an estimated $91.7 billion in natural gas exports in the coming decades.
Under the new law, 40% of liquefied natural gas revenues will finance the fund during its first 15 years, with the remaining portion allocated to the national budget.
Subsequently, a balanced allocation between savings and expenditures will be implemented.
“The regulation represents a significant advance in the search for transparency, accountability and good governance in the natural resources sector,” affirmed Mozambique’s finance ministry in a statement Tuesday.
A supervisory committee, which will include independent stakeholders and civil society representatives, will oversee fund operations.
The committee will ensure transparency and accountability through direct reporting to parliament and the quarterly publication of findings.
Integral to an economic reform agenda in collaboration with the International Monetary Fund, the legislation marks a milestone for a nation that has grappled with financial isolation since 2016.
