Maputo, May 18, 2026 (Lusa) - Mozambique’s government has confirmed that it transferred $12.5 million (€10.7 million) from natural gas revenues to the Mozambique Sovereign Wealth Fund during 2026 Q1, a move aimed at bolstering macroeconomic stability.
“With the transfer of $12.5 million to the Sovereign Fund account in 2026 Q1, it is clear that the government is strengthening macroeconomic stability through the management of natural gas revenues and the Fund,” said a report on budget implementation from January to March.
The government notes that allocating 60% of gas revenues to the state budget and 40% to the Sovereign Fund balances immediate needs and future savings, in a model that values transparency, good governance, and control over public revenues.
"However, effectiveness depends on implementation capacity and fiscal discipline."
"Despite the opportunities, risks remain, such as price volatility and dependence on natural resources," the government warned.
The market value of the Sovereign Fund rose by almost 7% in the first four months under the central bank’s management, to $117.5 million (€100.5 million), according to figures Lusa previously reported.
The government had previously, on 10 December, handed over the first $109.97 million (€94 million) in gas exploration revenues to the Bank of Mozambique, as the fund’s manager, for the capitalisation and launch of the Sovereign Fund’s operations.
On 6 January, the government made a further capital injection into the Sovereign Fund, amounting to $6.159 million (€5.3 million).
As of 8 April, according to the latest data from the Bank of Mozambique, the Sovereign Fund had a capital of $117.477 million, a 6.8% increase over four months, and a market value of $117.5 million (€100.5 million).
The parliament approved the creation of the Sovereign Fund on 15 December 2023, stipulating that it should be funded by 40% of the annual revenue from natural gas exploitation, which is expected to reach $6 billion (€5.129 billion) annually in the 2040s.
The Bank of Mozambique previously explained that the Sovereign Fund was a portfolio of financial assets managed in accordance with legally established principles, rules, and procedures, and that the creation of the fund was driven by the need to ensure that revenues from oil and gas exploration drove the country's social and economic development.
The Sovereign Fund is entirely state-owned and aims to accumulate savings for future generations by collecting oil and natural gas revenues and investment returns, and by stabilising the state budget during periods of oil revenue volatility.
The government retains overall responsibility for the management of the Sovereign Fund, which is operationally managed on the international financial markets by the Bank of Mozambique, in accordance with investment policy and subject to internal and external audit.
Mozambique has three approved mega-development projects to exploit the gas reserves of the Rovuma Basin, located off the coast of Cabo Delgado, which are ranked among the largest in the world, including one by TotalEnergies, with a capacity of 13 million tonnes per annum (mtpa), currently in the restart phase, following a suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), which is awaiting a final investment decision, both on the Afungi Peninsula.
Additionally, in the ultra-deep waters of the same basin, Area 4, a consortium led by Italy’s Eni has been operating the Coral South floating unit since 2022 and is currently progressing towards a second unit, Coral North, scheduled to begin production in 2028.
PVJ/MYAL // ADB.
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