Regulatory Alerts2024-01-09
Law No. 1/2024 - Establishes the Sovereign Wealth Fund of Mozambique
The Assembly of the Republic of Mozambique enacted Law No. 1/2024 to establish the Sovereign Wealth Fund (FSM) to maximize national economic gains from oil and gas revenues while stabilizing the state budget and accumulating savings for future generations. The law mandates that FSM revenues be deposited into a transitional account and allocated between the state budget and the fund according to specific projections and timelines, with strict prohibitions on using fund assets for guarantees, public debt, or political financing. Governance is shared among the Assembly, Government, and Bank of Mozambique, overseen by an independent Supervisory Committee and an Investment Advisory Council, ensuring transparency through mandatory quarterly and annual reporting and independent auditing.