The government reiterates that it will involve all segments of society in the analysis of the proposed Sovereign Wealth Fund Law, in order to elaborate the best model for Mozambique. The document should be shared with all parties and, subsequently, submitted for consideration to Parliament.

The Ministry of Economy and Finance also reaffirmed its commitment last Wednesday in Maputo, during a high-level meeting on the Sovereign Wealth Fund, an event organized by the Civic Movement on the Sovereign Wealth Fund (MCFS).

"The government will continue to give primacy to the involvement of all segments in this process, in an inclusive way, in order to obtain the best possible results in terms of a model for Mozambique," said the representative of the Ministry of Economy and Finance at the event, Ângelo Ferreira, speaking on behalf of the government.

According to Ferreira, quoted by AIM, with the discovery of huge deposits of natural gas, estimated at around 2.8 trillion cubic meters, the prospect is for growth in state revenues which will improve the fiscal balance and human development indices. To this end, he added, there is a need to combat the paradox of wealth by creating institutions for the control and distribution of resources from raw materials.

"It will be through mechanisms of wealth distribution in order to avoid mismanagement of resources, lack of diversification of the economy based on concentration, exploitation of raw material, that is, an economy that reinforces poverty and violence, without an ideology of present and future well-being," he noted.

He revealed that the Central Bank has a mandate to lead the process of drafting a concept note that served as the basis for the entire process of listening and collecting contributions from different segments of society. This process will culminate with the proposal of the model to be adopted in Mozambique, how to ensure the best model of governance and transparency for the country, and how to ensure that all Mozambicans enjoy the benefits resulting from the exploitation of natural resources.

"In this sense, the Bank of Mozambique made visits to exchange experiences to the sovereign wealth funds of Alaska in the United States of America, Trinidad and Tobago, East Timor, Botswana, Angola and Norges Bank, seeking experiences from these countries," he pointed out.

He mentioned that the creation of the Sovereign Fund aims to define deposit and withdrawal rules ensuring that the allocations to the State Budget are relatively stable over time and to prevent price volatility in the international commodities market from being transmitted to the national economy. It also aims to promote investments in assets in Mozambique and abroad, to form public savings, to foster projects of strategic interest to the country, and to mitigate the effects of economic cycles.