Government has collected gas exploitation revenues amounting to 67.64 million US dollars in the Rovuma Basin, Northern Province of Cabo Delgado from January to September.
The Finance Minister, Carla Louveira recently told parliament that 47.58 million, or 60 percent of the total 67.64 million dollars is earmarked for public expenditure projection under the 2025 Economic and Social Plan and State Budget (PESOE) while the remainder goes into the country’s Sovereign Wealth Fund.
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.
So far Mozambique has the third largest natural gas reserves in Africa, estimated at 180 trillion cubic feet.
“Additionally, it is clear that the Sovereign Fund mechanism was designed to protect structural savings whenever revenue exceeds projections.
“In 2024, at least 90.52 million dollars in gas revenues were injected into the transitional account. In the same year, the PESOE expected to collect 75.1 million dollars. In 2023, the transaction amounted to 40.52 million dollars”, she said.
The regulation governing gas revenues stipulates that 60 percent of the value is allocated to the PESOE each year, and 40 percent goes to the Sovereign Fund.
Revenues from gas extracted in the Rovuma Basin, deposited in the transitional account from 2022 until 30 September this year, reached a total value of 198.68 million dollars.
“It is also important to highlight that, following the approval of the Sovereign Fund law and its respective regulations, information on revenue collection and the respective deposits in the gas revenue transitional account are reported quarterly in the PESOE balance sheets”, the minister said.
To ensure greater accuracy in fiscal projections and greater reliability in budget forecasts, the government, according to Louveira, is strengthening intersecting coordination mechanisms between planning and budgeting institutions.
Furthermore, the minister announced a new collection system, which includes a specific module for managing revenues from the extractive sector, providing mechanisms to guarantee reporting, traceability, transparency, and compliance with the obligations of the mining and oil sectors.
