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Mozambique Sovereign Fund: The technical proposal will be ready this year
2:20 CAT | 26 Aug 2020
File photo:O País
Despite the constraints imposed by the Covid-19 pandemic, the Bank of Mozambique says that a technical proposal for the creation of a sovereign fund will be delivered this year.
Speaking in an exclusive to ‘O País’, central bank administrator Jamal Omar said the document would hopefully improve the management of gas exploitation revenues.
Asked about possible delays relating to Covid-19, Omar said that, despite changes in the timeline for the creation of the sovereign fund, “the technical work will not be affected”, reinforcing the bank’s commitment to presenting the proposal by December of this year.
Without elaborating on the content of the proposal, the Bank of Mozambique administrator said that “a well-managed sovereign fund could revitalize other sectors of production, most specifically agriculture, which employs around 70% of the population of Mozambique”.
In anticipation of the gains from hydrocarbon projects, the debate around the creation of a sovereign fund began in March 2019, with President Filipe Nyusi arguing that it “should function independently, both financially and operationally, with transparency, predictability and in the strictest compliance with the law”.
The head of state cited Norway and Mauritius as good examples, both of which have proven viable when it comes to saving income from the exploitation of natural resources and channelling the benefits to the population.
By Velsoma Cumbana
Source: O País
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