The Mozambique Sovereign Wealth Fund (FSM) recorded profits of USD 1 million in the first quarter of 2026, driven by interest earned from financial investments held in international banks, according to the quarterly report released this Monday (18) by the Bank of Mozambique (BdM).
According to the document, the gains recorded between January and March resulted from the investment of the fund’s resources in short-term deposits with three financial institutions located in Canada, France and Japan. During the same period, the FSM’s total assets grew by 6.6%, reaching USD 117.4 million, driven by revenues from Liquefied Natural Gas (LNG) exploitation and by financial returns generated from these investments.
The Bank of Mozambique, which has been responsible for the operational management of the fund since last December, explained that the FSM remains in a transitional phase while awaiting approval of the Master Plan submitted to the Ministry of Finance. This instrument is expected to define the asset allocation strategy, the composition of investment portfolios and the applicable risk limits.
Until the plan is approved, the resources will continue to be invested conservatively in international bank deposits, prioritising liquidity, capital preservation and profitability. Nevertheless, the central bank acknowledged that, with the future diversification of investments, the fund’s performance may begin to reflect the natural fluctuations of international financial markets.
Created in December 2023 by Mozambique’s Parliament, the Mozambique Sovereign Wealth Fund is financed by 40% of annual revenues from natural gas exploitation. Official projections indicate that, in the 2040s, revenues from the sector could reach around USD 6 billion per year.
According to the BdM, the creation of the FSM aims to ensure that revenues generated from oil and gas exploitation contribute to the country’s economic and social development, while also guaranteeing savings accumulation for future generations and helping stabilise the State Budget during periods of volatility in energy revenues.
Mozambique currently has three approved megaprojects for natural gas exploration in the Rovuma Basin, off the coast of Cabo Delgado. Among them is the project led by TotalEnergies, with a capacity of 13 million tonnes per year, currently in the process of resuming operations after being suspended due to extremist attacks in the region. ExxonMobil is still awaiting the final investment decision for its own 18 million tonnes per year project, also located on the Afungi Peninsula.
In the ultra-deep waters of Area 4 in the Rovuma Basin, the consortium led by Italian company Eni has operated the Coral Sul floating platform since 2022 and is currently preparing the development of the Coral Norte unit, whose production is expected to begin in 2028.
Source: Diário Económico
