Mozambique’s Ministry of Finance has reported that $210Million had been collected from oil and natural gas exploitation revenues in Mozambique as of June 30, 2025; funds that were subsequently applied to the new Mozambique Sovereign Fund (FSM), created and approved in 2023.
“Data from the economic and social balance of the State Budget execution from January to June 2025 indicate that these revenues include $164.6Million from 2024 and $45.2Million from the first half of 2025”, the Ministry said.
“The amounts were deposited into a transitional account held at the Bank of Mozambique, under the terms of Article 6 of Law No. 1/2024 of January 9, which establishes the Mozambique Sovereign Fund,” the document detailed.
Mozambique Sovereign Fund (FSM) was created by the country’s Parliament on December 15, 2023, to be funded by revenues from natural gas exploitation, which, by the 2040s, could reach $6Billion annually, according to the Ministry of Finance. In 2024, the government completed all the necessary instruments to operationalize the FSM.
The regulation guiding the FSM establishes procedures to ensure the transfer of resources from liquefied natural gas exploitation, as well as from future oil and gas projects. 60% of revenues will be allocated to the State Budget in the first 15 years, with 40% to the Sovereign Fund account. From the 16th year onwards, the distribution will be equally divided (50/50).
FSM’s Supervisory Committee, chaired by Emanuel Chaves (elected in May 2025 by the nine member committee), is an independent body of the Sovereign Fund, responsible for monitoring and overseeing revenues from natural resource exploitation, supervising deposits in the transitional account, overseeing fund management, and analyzing the allocation of revenues between the State Budget (60%) and the Sovereign Fund (40%). The Committee’s activities are reported quarterly to the Assembly of the Republic, and the respective reports are publicly accessible.
“Projections indicate that annual gas exports could amount to around $89.9Million over the lifecycles of several projects in the pipeline, if all approved development initiatives reach operational stages”, Max Tonela, former Minister of Economy and Finance in the (former President) Filipe Nyusi’s government, said in 2024. “In this scenario, annual state revenues are expected to peak in the 2040s, exceeding $6Bllion per year,” he added.
