The Sovereign Wealth Fund (SWF) management contract proposals have been finalised and are awaiting government approval. In the next few days, the documents will be submitted to the Council of Ministers for validation and subsequent signing by the BoM and the government authorities, according to the newspaper Noticias.
‘The management agreement will be signed soon, and the proposals are practically finalised,’ said Amílcar Tivane, deputy minister of Economy and Finance, although he did not give an exact date for the signing of the contracts.
One of the important steps towards signing the contracts was the recent conclusion of the selection of the nine members of the supervisory board. However, the full operationalisation of the Sovereign Fund also depends on the selection of the members of the advisory board, according to Tivane.
As well as establishing the investment policy, the management contract will detail the role of the fund administrator.
These documents will include specifications on the operational manager’s mandate, functions, competences and investment policies.
The agreement will also define accountability models, investment processes, deadlines to be met and criteria for hiring internal managers.
In the first 15 years of the Sovereign Wealth Fund law being in force, 60% of revenues from the exploitation of natural resources, especially gas, will be channelled into the State Budget, while the remaining 40% will be allocated to the Sovereign Wealth Fund.
Projections indicate that annual gas exports could reach 91.7 billion dollars (around 5.8 billion meticals) during the life cycle of the projects underway. During the 2040s, annual revenues for the state could reach 6 billion dollars (approximately 379.5 billion meticals).
The government’s approval of the management contracts marks a crucial step towards the operationalisation of the Sovereign Fund, which aims to guarantee transparent and efficient management of Mozambique’s natural resources, ensuring sustainable economic benefits for the country.
