Mozambique’s 2025 Budget Allocates Gas Revenues for School Textbooks and Sovereign Wealth Fund

Government Plans to Distribute Remaining Textbooks Using LNG Revenue

Mozambique’s long-delayed school textbook distribution may finally reach completion, as the 2025 state budget includes MZN779.5 million ($12.2 million) for this purpose. This allocation comes from the country’s projected MZN5 billion ($78 million) in liquefied natural gas (LNG) revenues for the year.

Sovereign Wealth Fund Allocation Clarified

Under Mozambique’s sovereign wealth fund law passed last year, 60% of state revenues from LNG production (including taxes and royalties) flows to the state budget, while the remaining 40% is directed to the sovereign wealth fund. Government sources have clarified that a budget document incorrectly suggested the textbook funding would come from the sovereign fund itself, causing temporary concern among analysts.

Managing Expectations for Mozambique’s Sovereign Wealth Fund

The current size of Mozambique’s sovereign wealth fund stands at $158.8 million – barely exceeding two installments of the IMF’s discontinued concessional loan to the country. While revenues are expected to grow when major gas projects by TotalEnergies and ExxonMobil become operational, experts caution that:

• Initial revenue growth will be modest as project debts are repaid
• Future income remains uncertain due to fluctuating interest rates
• Global transition away from fossil fuels may impact long-term gas demand

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This report summarizes original content from Zitamar News. For complete details, please refer to the original source.