Maputo, 16 Oct (AIM) – The Mozambican Government has stressed that revenue from liquefied natural gas (LNG) production will be used both to finance the country’s current development and to create wealth for future generations.
“The Mozambican Government’s objective is indeed to ensure that revenue from natural gas can generate intergenerational wealth. The Sovereign Wealth Fund Law is already producing tangible results by establishing a division of LNG revenue between public expenditure and savings”, said Carla Loveira, Finance Minister.
“We do not want all the resources to be entirely consumed by the current budget”, she added.
Under the model currently in force, around 60 percent of revenue is channelled to the State Budget, while the remaining 40 percent goes into a savings account managed by the Bank of Mozambique.
According to the minister, the funds are already financing major infrastructure projects.
“Gas revenue is already being channelled into resilient infrastructure, such as roads, schools, bridges and hospitals,” she said, cited by the Portuguese News Agency (LUSA).
Loveira revealed that 109 million US dollars was allocated to the Sovereign Wealth Fund’s savings component in 2025.
“Today, the Sovereign Wealth Fund already has a balance of 151 million. We can say that the Sovereign Wealth Fund is achieving its objectives of macroeconomic stabilization and intergenerational savings,” she said.
The minister stressed that the country can now use part of the revenue for priority investments, while another portion is set aside to address future crises or financing needs.
“We have already managed to allocate LNG revenue to investment and also to capitalization and savings,” she added.
Loveira also said that the initial results showed that the strategy was benefiting the population.
“We can already see these benefits for the population and for managing the needs that prompted the creation of the Sovereign Wealth Fund”, she said.
Am/