Mozambique’s sovereign wealth fund (FSM) received $45.24 million in the first half of 2025 from natural gas exploitation, bringing total deposits to $210 million by June.
According to the Ministry of Finance’s economic and social report for the first half, the 2025 inflows were added to $164.69 million from 2024.
These monies are all deposited into a transitional account at the Bank of Mozambique, in line with Law No. 1/2024, which established the FSM.
The fund was inaugurated in 2024 and that year revenues deposited amounted to $158.8 million, according to government data.
The fund is financed by 40% of natural gas export proceeds.
Revenues are not expected to exceed $1 billion annually until the 2030s when gas concessionaires will have recovered their investments and begun paying corporate taxes.
The government says it could even reach $6 billion annually by the 2040s if all prospects are achieved.
Emanuel Chaves, chairman of the FSM Oversight Committee, has pledged to guarantee that revenues are managed transparently and responsibly.
“We will ensure […] that the 40% [of proceeds] are being properly managed and applied responsibly and transparently,” he told reporters in May.
The sovereign wealth divides opinion
Since receiving parliamentary approval in late 2023, the Mozambican sovereign wealth fund’s use has sparked debate.
The Civic Movement on the Sovereign Fund, a coalition of civil society groups, has criticised government plans to use FSM resources to finance social projects under the 2025 State Budget (PESOE).
Coordinator Fátima Mimbire argued the move “violates the law,” stressing that no withdrawals can be made without proper justification and authorisation.
Despite the criticism, PESOE outlines 15 projects to be financed by the FSM in one of the world’s poorest countries this year.
These include child vaccination programs, textbook distribution, new schools and classrooms, expansion of water supply infrastructure, and household production support.
Parliament approved the creation of the Sovereign Wealth Fund in December 2023 to safeguard gas revenues for future generations and meet development needs today.
Gas exports boost Mozambique’s Fund
Mozambique’s gas export revenues have maintained a steady growth since commercial production began a few years ago.
The country hosts three mega gas projects in the Rovuma Basin, considered one of the largest untapped offshore gas reserves in the world.
These include the Coral Sul and Coral Norte, both operated by Italian energy giant Eni, and the currently stalled $20 billion Mozambique LNG.
Of these, only the Coral Sul is currently producing. The project began production in November 2022.
This ushered Mozambique into the global LNG export markets in 2024, when it fetched the government over $200 million in export revenues.
Furthermore, Mozambican government hopes to raise $23 billion only from Eni’s Coral Norte over the project’s 30 life-cycle.
The $7.2 billion gas project was approved in April and is expected to produce up to 3.5 million tonnes of LNG annually by the time it is completed in 2028.
