Mozambique Sovereign Wealth Fund Grows More Than 31% Since December 2025

According to the latest investment report, dated 25 September, the fund reached approximately US$144.4 million, compared with around US$110 million transferred for its establishment on 10 December 2025.

The figures represent an accumulated increase of about US$34.5 million in less than a year.

The Sovereign Wealth Fund is managed by the Bank of Mozambique and was created to invest part of the country’s revenues from natural gas exploitation.

On 25 September alone, the value of the portfolio increased by around US$152,000, with a daily return of 0.11%.

The US dollar-denominated component recorded a daily gain of 0.13%, while the euro-denominated portfolio advanced by 0.04%.

Despite the accumulated increase since its establishment, the fund’s more recent performance continues to be affected by developments in international bond markets.

Since the beginning of September, the portfolio had accumulated losses of 1.08%, while the quarterly decline stood at 0.63%.

The US dollar-denominated portfolio accounted for around US$101.2 million, equivalent to approximately 70% of the fund’s total assets.

The remaining 30%, corresponding to about US$43.2 million, was invested in euro-denominated assets.

The current structure reflects the implementation of a long-term investment strategy launched by the Bank of Mozambique in the second quarter of this year, following approval of the Investment Master Plan by the Ministry of Finance.

Previously, the Sovereign Wealth Fund’s resources were mainly held in bank deposits.

From the second quarter, the central bank began shifting the assets into a portfolio largely based on international sovereign debt denominated in US dollars and euros.

At the end of June, the Sovereign Wealth Fund had a market value of about US$118.4 million. This means that its assets increased by more than US$26 million in roughly three months.

The Investment Master Plan provides that 70% of the resources should be managed in line with the ICE BofA 0-5 Year US Treasury Index, which is composed of US Treasury bonds.

The remaining 30% is managed in line with the ICE BofA 0-3 Year Euro Government Index, which tracks sovereign debt issued in the euro area.

The portfolio’s geographical exposure is therefore mainly concentrated in the United States, while the European component is spread across countries including Germany, Austria, Finland, France and the Netherlands.

Investment rules also require at least 75% of the fund’s resources to remain invested in sovereign bonds included in the benchmark indices.

The regulations prohibit investments in assets issued by Mozambican companies or directly linked to the domestic economy.

Investments with exposure to the oil and gas sector are also prohibited, despite the fund being financed by revenues from natural gas exploitation.

Eligible assets must carry a minimum credit rating of A-.

Created under Law No. 1/2024, the Mozambique Sovereign Wealth Fund aims to support economic and social development, build savings for future generations and contribute to the stabilisation of the State Budget.

The legislation requires 40% of annual revenues from natural gas exploitation to be channelled into the fund.

The government estimates that these revenues could reach around US$6 billion per year during the 2040s.