The Assembly of the Republic of Mozambique will discuss in general terms on Wednesday a proposal to create a sovereign wealth fund in the country, according to a press release from the Parliament.
The substantiation of the proposal, which is aimed at ensuring the use of gas revenues from the Rovuma basin in the development of the country, will be presented to the deputies by the Minister of Economy and Finance Max Tonela.
The document is being debated in Parliament after the Mozambican National Resistance (Renamo), the main opposition party, last week challenged a proposal submitted by the government of the Mozambican Liberation Front (Frelimo).
Renamo is pushing for the fund to be run by an autonomous entity and not by a central bank.
The proposed law “does not create a mechanism to let the entire Mozambican society know where the money is,” Alfredo Magumissa, deputy head of the Renamo bench, told a press conference, criticizing the fact that it is based on a single account with Banco de Mozambique.
The bill was approved by the Council of Ministers in November 2022 and provides that the WSF will be capitalized over the first 15 years from 40% of gas and oil revenues and 60% from the state budget (GB).
Starting from the 16th year, the proceeds will be divided equally between the fund and the OE.
Frelimo has an absolute majority of 184 MPs in Parliament, Renamo has 60 seats and the Mozambican Democratic Movement (MDM) has six MPs.
Author: Portuguese
Source: CM Jornal
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.