Natural gas exploration has generated €310 million in state revenue since 2022, with the proceeds financing the construction of schools, hospitals, bridges and dams across Mozambique. This year alone, the sector has contributed €75.5 million to public coffers, Finance Minister Carla Loveira announced, as quoted by Lusa.

Loveira made the disclosure at a business forum organised by the Confederation of Economic Associations of Mozambique (CTA) in Maputo, where she explained that resources channelled into the State Budget (OE) are directed towards priority investments.

'The resources allocated to the State Budget are specifically intended to finance strategic projects that contribute to the country's economic and social development,' she said.

Among the projects being funded, the minister highlighted the construction of bridges, dams, classrooms, hospitals and tax collection posts. According to Loveira, these works are improving public infrastructure, broadening access to essential services and strengthening the state's revenue collection capacity.

The minister further disclosed that, as of 30 September this year, €238.5 million had been transferred to the State Budget and a further €141.3 million to the Sovereign Wealth Fund account. Both amounts correspond to revenues derived from oil and natural gas exploitation.

At the same event, Loveira noted that the government has allocated 33.2% of projected state revenue for this year to the procurement of goods and services. She acknowledged, however, that available resources remain below desired levels, and argued for a gradual increase, particularly to finance public investment.

'We recognise that resources are still far short of what is needed. Nevertheless, we hope that, in the coming years, the funds allocated — especially for investment — will increase gradually, as a result of the reforms being implemented by the government,' she said. The minister added that the executive intends to strengthen the state's investment capacity, taking into account the contribution of economic activity to liquidity availability, the stimulation of domestic demand and the development of the private sector.

Despite signs of economic recovery, Loveira acknowledged that challenges persist regarding public debt sustainability and state treasury management. She argued that macroeconomic stability and the sustainability of public finances are essential to reinforcing investor confidence and ensuring greater predictability in the business environment. To that end, she announced that the government is preparing a fiscal consolidation plan.

The plan envisages the modernisation of revenue collection mechanisms, the sustainability of the public wage bill and the restructuring of public debt — including the clearance of arrears — as well as a reduction in dependence on domestic and short-term financing, liability management and the timely disclosure of more comprehensive financial information.

Mozambique currently has three large-scale natural gas exploration projects under way or in the implementation phase. Of these, only the project operated by Italy's Eni, located in ultra-deep waters of the Rovuma Basin, is currently in production.