The European Parliament’s Committee on Budgets last week called the creation of a sovereign wealth fund in Mozambique an important step towards transparent management of natural gas revenues and the distribution of prosperity among the population.
“The creation of the sovereign fund” can ensure that “the revenues from gas are well managed and add value”, said José Manuel Fernandes, head of the delegation of the European Parliament’s Committee on Budgets, which ended a four-day visit to Mozambique on Thursday.
The Portuguese MEP was speaking at the end of a meeting with Mozambique’s minister of economy and finance, Max Tonela, in Maputo.
The establishment of a special account where the financial resources generated by the extraction of natural gas will be deposited will allow the funds to be channelled into development actions in favour of the Mozambican people, added José Manuel Fernandes.
Mozambique’s parliament has scheduled an extraordinary session for 4 August to start the consideration of the proposal to create the sovereign fund.
Fernandes praised the country for taking steps to modernise its economy and financial management, considering this action a pillar for attracting investment.
He pointed out the positive impact of the Package of Economic Acceleration Measures (PAE) approved last August for small and medium-sized enterprises, emphasising the importance of the performance of the business fabric in creating jobs and income.
“The objective is also to attract investment with measures that favour the strengthening of small and medium-sized enterprises,” he stressed.
Mozambique’s minister of economy and finance said at the meeting that the European Union (EU) had been a key partner through support to several areas.
“The European Union is Mozambique’s main development partner, with a contribution that has been increasing, but there is always room for improvement,” said Tonela.
Tonela defended the need to increase trade, noting that the African country’s economy has seen progressive growth since the post-Covid-19 pandemic recovery.
“We have an economy that has been showing very positive prospects for medium and long-term growth since Covid,” Max Tonela emphasised.
In 2021, the Gross Domestic Product (GDP) rose by 4.1%. This year, it is estimated at 5%, with the possibility of reaching 7%, and in 2024 and 2025, it will maintain this “consistency”, added the minister of economy and finance.