Mozambique’s council of ministers has approved legislation for a new sovereign wealth fund to govern the nation’s earnings from natural gas exports.
- The introduction of this law is a key part of an economic program with the International Monetary Fund (IMF) and aims to improve governance in the country.
- The approval of the legislation marks a significant step towards transparency, accountability, and good governance in the natural resources sector.
- Under the law, 40% of state revenues from liquefied natural gas exports will go to the fund for the first 15 years, with the remainder allocated to the national budget.
- After 15 years, the funds will be split equally between savings and annual spending.
- The legislation mandates the establishment of a supervision committee, an independent body responsible for monitoring and controlling the fund’s operations.
- The committee will report directly to parliament and publish quarterly findings to ensure transparency and accountability.