Mozambique Sovereign Fund: Investment Plan Prohibits Local, Oil/Gas Investments

Mozambique Sovereign Fund to base 70% of investments on US indices, according to its Investment Master Plan recently approved by the Government. The plan outlines that 70% of the fund's investments will be based on US indices and 30% on European indices.

This development has significant implications for practitioners advising clients with interests in Mozambique or investing in the country. The prohibition on investing in Mozambican companies or assets and the oil and gas sector may limit investment opportunities, while the reliance on international indices could introduce new risks and complexities.

The Investment Master Plan is guided by Law No. 21/2017 of 28 December, which established the Sovereign Fund as a public-private partnership to manage Mozambique's sovereign wealth. The plan also references the country's National Development Strategy (END) 2020-2035, which aims to promote economic growth and diversification.

The key parties involved in this development are the Government of Mozambique, which approved the Investment Master Plan, and the Sovereign Fund itself, which will be responsible for implementing the plan. Practitioners should monitor the implementation of the plan and its potential impact on investment opportunities in Mozambique.