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Mozambique Publishes its Proposed Model for a Sovereign Wealth Fund

The country is preparing to reap as much as $96bn — more than six times the size of its current GDP — from liquefied natural gas projects that companies including Total are building. The developments, which are the biggest private investments yet in Africa, could make Mozambique the continent’s second-biggest producer of the fuel. The central bank laid out plans for how the fund may function and which institutions it will report to. The proposal anticipates that the $96bn will accumulate over the lifetime of the projects. The fund will build up savings and contribute to fiscal stability when commodity prices fluctuate, according to the document published on the Bank of Mozambique’s website on Monday. Legislators would regulate the fund with the ministry of economy and finance managing it. The central bank will manage the fund’s operations and implement its investment policy.