Mozambique has approved setting up a sovereign wealth fund with billions of dollars of revenues from new natural gas finds and other resources.

The legislation stipulates that 40% of annual resource revenues will be allocated to the Mozambique Sovereign Fund, while the remaining 60% will contribute to the state budget for the initial 15 years. Subsequently, there will be an equal 50-50 distribution. The establishment of this fund was a crucial requirement from the International Monetary Fund for granting Mozambique a US$456 million credit line in 2022. With natural gas exports commencing a year ago, the government anticipates peak revenues exceeding US$6 billion annually in the 2040s. Mozambique, a significant producer of coal, aluminum, and other resources, has instituted an investment advisory board and an independent oversight committee, consisting of representatives from civil society, business, academia, and religious entities, as outlined in the law.