The market value of the Mozambique Sovereign Fund (FSM) grew by approximately 7% in the first four months under the management of the Bank of Mozambique, reaching $117.5 million (€100.5 million), according to data compiled by the Lusa news agency.
According to the agency, the fund began operations on December 10, when the government transferred an initial amount of $109.97 million—derived from gas exploration revenues—to the Bank of Mozambique, acting as the fund’s manager.
Subsequently, on January 6, the government made a further capital injection of $6.1 million.
According to the most recent data from the Bank of Mozambique, as of April 8, the FSM had capital of $117.477 million, representing a 6.8% increase over four months, and a market value of $117.501 million.
The creation of the FSM was approved by the Assembly of the Republic on December 15, 2023, and the fund is expected to be financed with 40% of the annual revenues from natural gas exploration, which could reach approximately $6 million per year by the 2040s.
As the managing entity, the Bank of Mozambique has previously clarified that the FSM constitutes a portfolio of financial assets, managed in accordance with the principles, rules, and procedures established by law. Its creation responds to the need to ensure that revenues from oil and gas exploration effectively contribute to the country’s social and economic development.
According to the central bank, the fund aims to maximize benefits for the national economy, serving also as a tool for stabilizing the State Budget, as well as a foundation for generating savings and accumulating wealth for future generations.
The FSM is owned by the State and its main objectives are the accumulation of intergenerational savings through the channeling of revenues from hydrocarbon exploration and the returns on related investments, as well as the mitigation of the impacts of oil revenue volatility on the State Budget.
The Government ensures the overall management of the fund, while the Bank of Mozambique is responsible for its operational management in international financial markets, based on a defined investment policy and subject to internal and external audit mechanisms.
