Summary

Mozambique has enormous natural gas deposits and other resources high commercial value. With reserves estimated at about 277 trillion feet cubic Mozambique could join the group of the ten largest producers natural gas and become the second largest producer in Africa after Nigeria. Apart from natural gas, the country's energy potential includes coal reserves, water resources, mineral sands, titanium and other high value minerals market.

The start of production of liquefied natural gas will bring challenges for the country point of view of macroeconomic and financial management. It is estimated that the country will raise about USD 96 billion over the life of the project exploitation of natural gas. The main challenge is how to maximize the gains in revenues from natural gas and other natural resources not[1] renewable and develop functional and transparent institutions without the economy atrophy.

International experience shows that the creation of a Sovereign Fund (SF) has been one of the alternatives found by some rich countries exhaustible natural resources for a proper and transparent management of non-renewable revenues from their exploitation.

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The Bank of Mozambique has prepared this document as a contribution to this discussion, presenting a proposal for SF model to adopt, SF and script law for the operation of a SF Mozambique.