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Mozambique's Sovereign Fund Sees $134.6 Million Revenue Growth in 2024

2024-11-12 11:56:50.114000

Mozambique's Sovereign Fund has reported a significant revenue intake of $134.6 million from oil and gas exploitation during the first nine months of 2024. This figure includes $74.1 million in revenues accrued from 2022 and 2023, along with $60.45 million generated in 2024. The funds have been deposited into the Transitional Account at the Bank of Mozambique, marking a crucial step in the operationalization of the fund, which was established on December 15, 2023. [8bdca2e4]

The Mozambique Sovereign Fund (FSM) is expected to play a vital role in the country's economic landscape, with annual revenues from gas exports projected to reach an impressive $6 billion by the 2040s. The regulations governing the FSM were approved on March 12, 2024, and its operationalization is anticipated in April 2024. The revenue distribution model is set to allocate 60% of the revenues to the State Budget and 40% to the FSM for the first 15 years, transitioning to a 50/50 split thereafter. [8bdca2e4]

The International Monetary Fund (IMF) has recognized the approval of the FSM as a significant advancement towards transparent resource management in Mozambique. This initiative is expected to enhance the country's fiscal stability and promote sustainable development through prudent management of its natural resources. [8bdca2e4]

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