Maputo — The Bank of Mozambique has received about 109 million US dollars to put into operation the country's Sovereign Wealth Fund, according to the Bank's governor, Rogerio Zandamela.

Speaking to reporters on Friday, Zandamela said this was the result of a management agreement signed on 19 November between the Finance Ministry, as the overall manager of the Mozambican finance system, and the central bank, as the operational manager of the Sovereign Fund.

The financial allocation, said Zandamela, is "a decisive step' towards making the Fund operational. The Fund, he pointed out, has been established "to ensure collective savings and to support the macro-economic stability of the country'.

The 109 million dollars includes sums (33.6 million dollars) which had not previously been channelled to the Single Transitional Account of Petroleum and Gas Revenues.

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The government gave the initial capital for the Sovereign Fund as almost 110 million dollars (to be precise, 109,972,545 dollars and 75 cents).

Under the legal framework for the fund, its tasks are to maximise the benefits from revenues from natural resources, strengthen macro-economic and budgetary stability, and create a sustainable base for future savings and wealth accumulation.

Currently, the revenue for the fund comes from the production of liquefied natural gas (LNG) in offshore areas one and four of the Rovuma Basin. In future, other oil and gas projects are expected to channel revenue to the fund.

The Bank of Mozambique is responsible for the operational management of the Fund, including investment of its resources on the international financial markets.

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