The Government of Mozambique plans to draw on the Mozambique Sovereign Fund (FSM) in 2026 to implement six priority projects, including the construction of a bridge, a hospital, schools, and a dam, with a total investment of 2.9 billion meticais ($44.9 million).
The measure is outlined in the Economic and Social Plan and State Budget (PESOE 2026) proposal, which will begin to be reviewed by Parliament in the coming days. Specifically, 1 billion meticais ($15.5 million) will finance the construction of the Save River bridge in Massangena, Gaza Province, in southern Mozambique.
Additionally, 365.2 million meticais ($5.6 million) will go toward a project for urbanization and serviced land development, while 500 million meticais ($7.7 million) will fund the construction and equipping of the Chibuto District Hospital.
A total of 143.4 million meticais ($2.2 million) will be used for the construction of customs and tax posts, and 800 million meticais ($12.4 million) will be allocated for the construction and furnishing of basic schools. The Locomue Dam construction will receive 134.8 million meticais ($2 million).
The document recalls that the Mozambique Sovereign Fund (FSM) was established as a strategic policy instrument for macroeconomic and fiscal stabilization, designed to ensure the prudent and sustainable management of revenues derived from liquefied natural gas (LNG) projects.
“Its creation responds to the need to mitigate the effects of international LNG price volatility on public finances, ensure budget predictability, and promote macroeconomic stability,” the report states.
The PESOE 2026 further highlights that the FSM also plays a crucial role in building long-term savings, ensuring intergenerational sharing of natural resources.
“At the same time, it serves as a mechanism to promote economic diversification and strengthen the country’s resilience to internal and external shocks, contributing to more sustainable and inclusive growth.”
In August, the Ministry of Finance revealed that by June of this year, $210 million (13.2 billion meticais) in oil and natural gas exploration revenues had been collected in Mozambique. These funds were subsequently allocated to the new Sovereign Fund of Mozambique (FSM), created and approved in 2023.
Data from the economic and social report on budget execution from January to June indicate that these revenues include $164.6 million (10.4 billion meticais) from 2024 and $45.2 million (2.8 billion meticais) from the first half of 2025.
“The amounts were deposited into a transitional account held at the Bank of Mozambique, in accordance with Article 6 of Law No. 1/2024 of January 9, which establishes the Mozambique Sovereign Fund,” the document details.
Source: Diário Económico
