After several public debates on the need to establish a mechanism to manage the revenue from the exploration of natural resources in Mozambique, in January 2023, the Government finally submitted for approval by Parliament, the Draft Lawl that creates the Sovereign Wealth Fund of Mozambique (SFM), a bank account domiciled at the Central Bank of Mozambique.
To be established with the aim of leveraging socio-economic development, budget stabilization and savings for future generations, the aforementioned draft law submitted to Parliament, in CIP’s opinion, still has many weaknesses. The weaknesses extend from the definition, the scope, the mechanism for access to the fund to the transparency of its management.
Given the above scenario, there is a need to review the draft law to ensure it can reflect the proposed objectives as well as to make sure that it is aligned with the principles of good governance.
