Bank of Mozambique prepares to manage country’s Sovereign Wealth Fund

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Bank of Mozambique prepares to manage country’s Sovereign Wealth Fund

12:16 CAT | 07 Nov 2025

Photo: Banco de Moçambique

The Bank of Mozambique is already preparing to manage the Sovereign Wealth Fund, which will be financed by a portion of the revenues from gas production, with only the signing of the agreement with the Government still pending, according to the governor.

The “operational preparation for the management of the Sovereign Wealth Fund of Mozambique, awaiting only the signing of the Management Agreement with the Ministry of Finance,” was listed by the central bank governor, Rogério Zandamela, among the priorities of the institutional reforms of the Bank of Mozambique.

Rogério Zandamela made these remarks during the 50th Advisory Council of the Bank of Mozambique, which concludes today in Pemba, Cabo Delgado.

Parliament approved on 15 December 2023 the creation of the Sovereign Wealth Fund of Mozambique (SWF) with revenues from natural gas exploitation, which in the 2040s should reach US$ 6 billion annually.

The fund was established in April the following year, and since then the legal framework has been amended to provide for the allocation of 40% of the tax revenues and capital gains from gas and oil exploitation to the fund, with the remaining 60% to finance the State Budget.

The Mozambican Minister of Finance, Carla Loveira, stated on 29 October that “all the instruments” necessary for the “full operationalisation” of the SWF “are ready,” with the signing of the management agreement to follow.

“The signing of the management agreement between the Public Treasury and the Bank of Mozambique is in its final phase, which will allow the fund to become operational and start full capitalisation based on the guidelines set out in the SWF Investment Policy,” said Carla Loveira, speaking at the opening of the Coordinating Council of the Ministry of Finance, held in Maputo.

The Government expects to sign this management agreement, the final step in this process, in the coming weeks, according to earlier information.

According to Carla Loveira, data as of 23 October 2025 “show a balance in the transitional account of approximately US$ 204.5 million,” equivalent to €175.7 million, in terms of gas revenues channelled under the legislation.

“Between 2022 and 2024, the State collected about US$ 165 million in taxes on oil and gas production, of which US$ 33.6 million was channelled to the State Budget, according to the legislation in force at the time,” she also explained, referring to the period before the SWF was established.

“The sovereign wealth fund was designed with the purpose of ensuring good governance, transparency and accountability in the management of revenues from natural resources, preventing their volatile or unproductive use,” Carla Loveira recalled.

Mozambique has three approved mega-projects for the development of LNG reserves in the Rovuma Basin, classified among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies, producing 13 million tonnes per annum (mtpa), currently resuming after suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), awaiting a final investment decision, both on the Afungi peninsula.

Additionally, in this case in ultra-deep waters of the same basin, Area 4, a consortium led by the Italian company Eni, which has been operating since 2022 the floating unit Coral Sul and is now advancing to the second unit, Coral Norte, which should begin production in 2028.

Source: Lusa