Mozambique: When will the Sovereign Fund come into operation? The central bank doesn’t know – A Verdade

Login

Register

http://www.clubofmozambique.com/

Mozambique: When will the Sovereign Fund come into operation? The central bank doesn’t know – A Verdade

5:20 CAT | 08 Feb 2024

File photo:Notícias

The Governor of the Bank of Mozambique HAS admitted to Jornal @Verdade that he does not know when the Sovereign Fund he must manage, whose law was approved in December by the Assembly of the Republic and IS already enacted by President Filipe Nyusi, will come into operation.

“It is a political decision” Rogério Zandamela stressed.

As @Verdade anticipated, although the government of Filipe Nyusi has finally moved forward with the approval of the Law CreatIng the Sovereign Fund of Mozambique, in force since January 9th, its implementation will still take time, thereby making way for the first revenues from the natural gas being produced in the Province of Cabo Delgado to be spent during the last year of President Nyusi’s term of office.

On the sidelines of a Monetary Policy Committee press briefing on last week’s Wednesday (30-01), Zandamela, the governor of the institution which, by law, is the operational manager of the Sovereign Fund of Mozambique, explained to Jornal @Verdade: “The Bank of Mozambique played a technical role in preparing the strictly technical document of the Sovereign Fund. The document underwent mutations, and that is how it should be and, ultimately, the Sovereign Fund is a political decision.”

“Following the decision of the Assembly of the Republic and the promulgation by the President of the Republic, there will be regulations, because the Law without regulations cannot be effective, cannot be applied,” the Governor of the Bank of Mozambique further clarified.

“The effectiveness of the law depends on the regulations. I want to believe that you can ask the Minister of Economy and Finance this question: it is up to him to say when the regulations allowing the Sovereign Fund Law to be truly effective will be ready.”

READ: Mozambique’s Sovereign Fund is an “important step” toward transparent management – IMF

Source: A Verdade