Deputados da Assembleia da Republica
Maputo, 14 Dec (AIM) – The Mozambican parliament, the Assembly of the Republic, on Wednesday passed the first reading of a government bill to establish a Sovereign Wealth Fund.
Introducing the bill, the Minister of Economy and Finance, Max Tonela, said the intention of the Fund is to reserve part of the income from Mozambique’s enormous deposits of natural gas “to guarantee financial resources for future generations”.
“To transform gas revenue into sustainable development, it is fundamental to establish transparent policies which not only maximize the benefits, but also deal proactively with the challenges inherent to these resources”, stressed Tonela.
To ensure that the revenue from natural gas “supports long term economic development and contributes to improving social welfare, it is essential that the revenue be managed and spent efficiently in accordance with the established development priorities, and taking into account the interests of present and future generations”, he declared.
Tonela said the government’s projections indicate that, over the life span of the liquefied natural gas (LNG) project, the sums earned through exports of the gas will reach the nominal figure of 91.7 billion US dollars, “in a scenario in which all the development initiatives so far approved are in operation”.
Annual revenue for the Mozambican state from the gas, he forecast, “will reach a peak in the decade of the 2040s of more than six billion dollars a year”.
The importance of the Sovereign Wealth Fund “lies in the need to ensure that this revenue is used in a sustainable way to drive long term development”, said Tonela. “By saving part of this revenue, and investing it, the Fund will act as an economic cushion against external shocks, softening revenue volatility”.
It would also contribute towards “a balance between immediate public expenditure and savings for the future, guaranteeing lasting benefits”.
Tonela said the Fund will be guided “by the principles of good governance, transparency, responsibility, independence and inclusion, in line with the best international practices”.
The Fund will be run, Tonela continued, “by an independent supervisory committee, including representatives of civil society, the business and academic communities and religious bodies reporting directly to parliament”.
There will also be a consultative investment committee “including financial experts and independent members who report to the government”.
The Bank of Mozambique will be responsible for the operational management of the Fund. It will publish accounts from an independent auditor every quarter, which will be discussed by parliament “to ensure full transparency and public access to the information”.
For the first 15 years, Tonela said, 60 per cent of the gas revenues will be transferred to the Mozambican state budget, and 40 per cent will be saved, and channeled into the Sovereign Fund.
After the fifteenth year, the proportions will change, with 50 per cent of the revenues channeled to the State Budget and 50 per cent to the Fund.
Tonela said the government’s bill results from wide-ranging consultations with various sectors of Mozambican society, “and so we think it reflects the position of the majority of Mozambicans on this matter”.
But when it came to a vote, only the ruling Frelimo Party supported the bill. The opposition parties voted against, on the grounds that yet more consultation was needed.
(AIM)
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