Bank of Mozambique to be confirmed as manager of sovereign wealth fund

Maputo, 12 Feb (AIM) – The Bank of Mozambique may be confirmed as operational manager of the country’s sovereign wealth fund at the end of the current month, through an agreement to be signed between the government and the central bank.

According to Monday’s issue of the Maputo daily “Notícias”, technical teams from the Ministry of Economy and Finance are working in order to conclude a proposal, which will later be approved by the Council of Ministers (Cabinet).

The law, which creates the sovereign wealth fund, was approved in December.

The National Director of Economic Policies and Development in the Ministry, Enilde Sarmento, explained that although the law on the Fund was approved by the Mozambican parliament, the Assembly of the Republic, a management contract is needed which will provide more details about the role that the central bank must play, taking into account its functions, and the implementation of investment policies.

“This instrument will also point out the methods to be followed when it comes to rendering accounts, investment processes, deadlines to be followed and the contracting of internal managers”, Sarmento said.

According to Sarmento, all the necessary instruments for the functioning of the sovereign wealth fund are being prepared, including the investment policy, as well as the creation of an advisory board.

“The documents are being drawn up and we are following what is in the law. By the end of February, we will have all the instruments submitted and approved by the government”, she said.

(AIM)

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