The Mozambican Government has confirmed the transfer of 12.5 million dollars (10.7 million euros) from natural gas revenues to the Mozambique Sovereign Wealth Fund (FSM) during the first quarter. This financial injection is intended to strengthen national macroeconomic stability through the strategic management of gas revenues and the fund itself, according to the latest budget execution report covering January to March.
The executive noted that allocating 60% of gas revenues to the State Budget and 40% to the FSM successfully balances immediate national needs with future public savings.
However, the government document explicitly warned that the overall effectiveness of this financial strategy depends on strong implementation capacity and strict fiscal discipline. Despite the massive economic opportunities presented by the sector, substantial risks persist, such as international price volatility and an over-reliance on natural resources.
Prior to this newly announced reinforcement, the market value of the FSM had already grown by practically 7% to 117.5 million dollars (100.5 million euros) during its first four months under central bank management.
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The executive previously delivered the initial 109.97 million dollars (94 million euros) in gas exploitation revenues to the Bank of Mozambique (BM) on December 10 to capitalize and launch the fund’s operations.
This was followed by another capital injection of 6.159 million dollars (5.3 million euros) on January 6. According to the central bank’s records from April 8, the sovereign fund held a capital of 117.477 million dollars—a 6.8% increase in just four months—and maintained a total market value of 117.501 million dollars.
The Mozambican parliament approved the creation of the fund on December 15, 2023, projecting that its 40% revenue share could yield up to 6 billion dollars annually by the 2040s. The Bank of Mozambique operates the FSM in international financial markets based on a strict investment policy subject to rigorous internal and external audits.
The fund’s primary goals are to accumulate generational savings and stabilize the state budget against oil and gas price shocks. Currently, Mozambique has three offshore megaprojects approved in the Rovuma basin, including projects led by TotalEnergies, ExxonMobil, and Italian energy giant Eni.
