Page 4 - AfrElec Week 33 2022
P. 4
AfrElec POLICY AfrElec
Mozambique’s president announces
plan to create natural gas-backed
sovereign wealth fund, cut taxes
MOZAMBIQUE MOZAMBIQUE plans to set up a sovereign project is the most advanced of the three. It
wealth fund to manage revenue from the recently announced a plan to start exporting in
exploitation of natural gas, which is abundant August.
in the country’s offshore north, President Filipe However, the insurgency poses a threat to
Nyusi has said. the projects. TotalEnergies had, in early 2021, to
Nyusi spoke of the fund along with a series of evacuate workers from an onshore site where it
measures that the southeastern African country is building a gas processing and export terminal
will implement to revive an economy battered after rebels attacked a nearby town. According
by COVID-19, recurrent floods and an Islamist to reports, about 4,000 people have died in the
insurgency in the northern province where some conflict while more than 700,000 have been dis-
oil supermajors are planning to or developing placed since October 2017.
gas fields, AFP reports. Nyusi said the wealth fund should become
Speaking in the capital Maputo on August operational “before the start of the greatest flow”
9, Nyusi said the sovereign wealth fund would of gas from the area, hinting that might not hap-
guarantee transparent management of revenues pen until after 2024, and warning the country
and help the development of Mozambique, one had an “expectation management problem.”
of the world’s poorest countries. He also promised to cut red tape and some
“We want to create and implement the sov- taxes while dropping visa requirements for some
ereign wealth fund of Mozambique, which will nationals.
have a robust regulatory framework to ensure Nyusi cut taxes on profits from 32% to 10%
hydrocarbon revenues are used in a transparent and value-added tax (VAT) from 17% to 16%,
way,” he said, as quoted by AFP. “We want a sov- expressing the hope that the incentives will
ereign fund to develop the country and ensure its increase investment in agriculture, aquaculture
future, especially in times of adversity.” and urban transport among other economic
International oil companies such as Exx- sectors, according to national news agency AIM.
onMobil (US), Eni (Italy) and TotalEnergies Visa requirements, said the president, will be
(France) discovered about 180tcf of recovera- waived for citizens of all countries that are not
ble gas in deep sea in Cabo Delgado Province. regarded as a likely source of illegal immigration.
Once tapped, Mozambique could become one “Why should we be bothered about a brother
of the world’s 10 biggest exporters. ENI’s $4.6bn, from Cape Verde?” he asked, referring to a fellow
3.4mtpa floating liquefied natural gas (LNG) Portuguese-speaking African country.
P4 www. NEWSBASE .com Week 33 18•August•2022
