After the approval of the Mozambique Sovereign Fund (FSM), through Law No. 1/2024, the Council of Ministers approved, on March 12, the Fund’s Regulation.
This regulation – fundamental for the application of the provisions of the aforementioned Law No. 1/2024 and for the start of the activity of the Sovereign Fund – establishes the procedures for the implementation and operationalization of the WSF.
The Regulation, in addition to establishing the governance guidelines (applicable to the bodies that participate in its decisions – the Assembly of the Republic, the Government, the Bank of Portugal, the Supervisory Committee, the Advisory Board, etc.) – defines all procedures in order to ensure the transfer of resources associated with present and future projects in the areas of liquefied natural gas (LNG) and oil.
The Regulation also establishes the circumstances in which, exceptionally, transfers of funds from the WSF to the State Budget may occur.
Finally, the Regulation provides for the establishment of an Investment Advisory Committee, composed of seven members; The creation of this Advisory Committee reinforces the Government’s concern to establish principles of transparency, legality, accountability, independence and prudence, which will be, among others, the pillars of the operation of the Sovereign Fund.
According to the Government’s own indication, the objective is for the WSF to start its operations as early as next April.