Africa Monitor Intelligence
Mozambique: IMF Imposes Central Bank Control of Sovereign Fund
Despite various setbacks, it is now set that the first gas to be produced in Cabo Delgado will come from the Coral Sul FLNG platform, in Area 4 (ExxonMobil, Eni and CNPC - operators - and GALP, KOGAS and Empresa Nacional de Hidrocarbonetos ), starting production in 2022.
The International Monetary Fund (IMF) imposed the creation of a Sovereign Fund (FS) in Mozambique in order to control the use of State revenue from natural gas production in Cabo Delgado, estimated at USD 95 billion during the exploration period. It is estimated that the first LNG production revenues will be received in 2022, with Coral Sul FLNG in an advanced stage of construction.
The model proposed by the IMF/ BdM reduces the role of the Government to a minimum, through the Ministry of Economy and Finance (MEF). The parliament will only be responsible for the approval of the FS law and the regulatory decree for the respective financing.
Central Bank proposed that the MEF's involvement, representing the government, proceed through the creation of a Technical Unit for Strategic Asset Management that should be composed of independent auditors, including an international consultant. The MEF will be responsible for defining the general lines of the FS investment policy, but will not have any binding involvement in the FS nor will it be able to decide on the mobilization of funds. READ MORE