Mozambique: Government claims that Wealth Fund will contribute to recovery – AIM report

The Mozambican government has announced that the transfer of 109.9 million US dollars to the country’s Sovereign Wealth Fund in December will contribute to economic recovery in “a context of contraction.” The sovereign fund, which was established over the last year, is aimed at controlling revenues from the production of liquefied natural gas from offshore areas 1 and 4 of the Rovuma Basin, in the northern province of Cabo Delgado. Mozambique has the third largest natural gas reserves in Africa, estimated at 180 trillion cubic feet. According to the government 2025 budget execution report, cited by the Portuguese News Agency Lusa, this sum can contribute to the recovery of the Gross Domestic Product in a context of contraction by ensuring macroeconomic stability and fiscal predictability, allowing the State to maintain public investment even in adverse periods.

“The Sovereign Wealth Fund, which is coordinated with budgetary expenditure, can help support strategic sectors with a high multiplier effect, stimulating production, employment and domestic demand. At the same time, the existence of sovereign savings reinforces investor confidence, reduces macroeconomic risks and mitigates inflationary and exchange rate pressures, creating favourable conditions for the gradual and sustainable recovery of economic growth”, claims the document. The Bank of Mozambique, in its role as regulator of the national financial system, has announced that the reserves of the Sovereign Wealth Fund totalled 116.8 million US dollars as of February 10.

These figures correspond to an increase of 6.8 million US dollars compared to the initial capital of 109.9 million dollars recorded on 10 December 2025, when the fund became operational. According to the note, economic activity in Mozambique fell by 0.85 percent in the third quarter, year-on-year, marking a year of consecutive declines. This performance is attributed to the “effects of post-election tension.” This is a delicate way of referring to the rioting that followed the announcement in October 2024 of general election results widely believed to be fraudulent.