Mozambican civil society organizations believe that it makes no sense for the country's future sovereign wealth fund to be fed only by hydrocarbon revenues and exclude profits from other natural resources.

According to Fátima Mimbire, coordinator of the Civic Movement for the Sovereign Fund, at a time when the issue of energy transition has become relevant, "there are natural resources that are becoming increasingly important and that should feed the future sovereign fund".

For Mimbire, who was speaking a few days ago during a seminar to discuss the proposed sovereign wealth fund law between members of Parliament and representatives of civil society in Maputo province, the abundance of resources such as graphite and heavy sands in Mozambique and the possibility of the country trading and exporting diamonds are facts that justify the future sovereign wealth fund including other natural resources.

Fátima Mimbire also criticized the fact that revenues generated by hydrocarbon projects already underway are left out of the account, and only future projects in the Rovuma basin in northern Mozambique are considered.

The activist reiterated civil society's doubts about the transparency of the Bank of Mozambique in the management of this instrument, noting that the Mozambican financial regulator has been the target of unfavorable evaluations by independent auditors.

"It is problematic that the Bank of Mozambique, which has doubts about transparency and does not report directly to Parliament, should be the manager of the future sovereign fund," he emphasized.

One option would be for the sovereign wealth fund to be managed by an independent entity, preferably from outside the country, with no commitments to power elites in Mozambique, he said.

The chairman of the Assembly of the Republic's Legal, Constitutional and Legality Affairs Committee, António Boene, argued that the legislative body is working towards a law that guarantees transparency and good governance of the sovereign wealth fund.

"There are no perfect sovereign wealth fund models, but parliament and all the relevant parties are working to ensure that we have a mechanism that ensures transparency, rigor and accountability," Boene said.

He pointed out that parliament plans to have the sovereign wealth fund law in the current session of Parliament, which ends in May.

Source: Lusa