The initial capital of the Mozambique Sovereign Fund (FSM), allocated by the Government through the Ministry of Finance on December 10, amounted to $109,972,545.75, according to the central bank, which has taken on the role of operational manager.
The central bank highlights that the FSM is a financial asset portfolio managed according to the principles, rules, and procedures established by law. Its creation, approved by the parliament at the end of 2023, was driven by the imperative need to ensure that revenues generated from oil and gas exploitation propel the country’s social and economic development.
“Maximizing benefits for the national economy and ensuring they serve as a stabilization pillar for the State Budget, as well as a solid foundation for savings creation and wealth accumulation for future generations,” explains the Bank of Mozambique, as the operational manager of the FSM.
The FSM is state-owned, aiming to accumulate savings for future generations by collecting revenues from oil and gas exploitation and their respective investment results and stabilizing the State Budget in cases of petroleum revenue volatility.
The Government holds the overall management responsibility for the FSM, which is operationally managed by the Bank of Mozambique in the International Financial Market, based on approved investment policy and subject to both internal and external audits, on a semi-annual and annual basis, respectively.
Petroleum and natural gas exploitation generated $67.64 million (€58.5 million) for Mozambique until September, as reported by the Ministry of Finance on November 13.
Information from the budget execution from January to September 2025 shows that the accumulated nine-month revenues amounted to $24.68 million (€21.4 million) from the Mining Production Tax and $42.96 million (€37.1 million) from the ‘Profit Oil’ component, which represents the portion of produced oil exceeding the “cost oil,” allocated to the Mozambican state.
Under the legislation that created the FSM, which will be funded with 40% of natural gas revenues, the document also notes accumulated revenues from 2022 to 2024 of $164.99 million (€142.7 million).
Since 2022, these revenues total $232.33 million (€201 million), deposited in the Transitional Petroleum and Gas Revenue Account at the central bank.
The parliament approved the creation of the FSM on December 15, 2023, with revenues from natural gas exploitation, which in the 2040s are expected to reach $6 billion (€5.19 billion) annually.
The fund was established in April of the following year, and since then, the legal framework has been revised to allocate 40% of taxes and capital gains from gas and oil exploitation to the fund, with the remaining 60% financing the State Budget.
Mozambique has three approved mega-development projects for exploiting the Rovuma Basin’s gas reserves, classified among the largest in the world, off the coast of Cabo Delgado. These include a TotalEnergies project of 13 million tons annually (mtpa), resuming after suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), pending final investment decision, both on the Afungi peninsula.
Additionally, in ultra-deep waters in the same basin, Area 4, led by Italy’s Eni, has been operating the Coral South floating unit since 2022 and is now advancing to the second unit, Coral North, expected to begin production in 2028.
