Mozambique: Parliament postpones Sovereign Wealth Fund debate

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Mozambique: Parliament postpones Sovereign Wealth Fund debate

8:01 CAT | 24 May 2023

File photo: TVM

Mozambique’s parliament has postponed the plenary meeting scheduled for Wednesday about the country’s sovereign wealth fund at the request of Frelimo, the majority benches, to “deepen the debate” before the proposal is put to a vote.

The speaker of Mozambique’s parliament, Esperança Bias, authorised the postponement of the session in response to a written request made on Tuesday by the bench of the Mozambique Liberation Front (Frelimo), to which Lusa had access.

“The Frelimo parliamentary delegation has requested the postponement of the debate on the draft law that creates the sovereign wealth fund of Mozambique, a matter that we consider of great importance to all Mozambicans.

In a statement, the parliament announced the postponement of Wednesday’s session without setting a new date for the debate.

The legislature said that members of parliament would meet on Thursday but with other issues on the agenda, including the review of the law on the ombudsman.

Last week, the main opposition party Resistência Nacional Moçambicana (Renamo), challenged the proposal to create the sovereign fund, saying that it should be managed by an autonomous body instead of the central bank.

As in other countries, the idea of the fund is to raise revenues from oil and gas resources to invest in development and ensure resources for future generations.

The draft law was approved by the cabinet in November 2022 and foresees that the fund will be capitalised in the first 15 years, with 40% of the revenues from gas and oil, with 60% from the budget.

From year 16 onwards, revenues will be shared equally between the fund and the budget.

Frelimo has an absolute majority of 184 seats in parliament, Renamo has 60 seats, and the Mozambique Democratic Movement (MDM) has six members.

Source: Lusa