The Mozambique Stock Exchange (BVM) aims to practically double the number of listed companies, to 30, and achieve a market capitalization equivalent to 35% of Mozambique’s gross domestic product (GDP) by 2028, to boost the real economy.
The goals are included in the Stock Exchange’s new Strategic Plan for the period 2024-2028, the chairman of the BVM board of directors, Salim Valá, explained to Lusa today.
There are currently 16 listed companies, with a market capitalization that represents 28.54% of GDP, Valá detailed.
These goals, he assured, “are possible to achieve and surpass through joint work between the different actors in the ecosystem, using the experience and lessons learned from the 26 years” of the BVM.
The plan’s objective for the next four years also involves increasing the number of registered holders from the current 26,305 at the Central de Valores Mobiliários (CVM) to “around 50,000” by 2028.
“We are convinced that the financial system can be galvanized by a capital market that drives the real economy, encourages productive investment in the medium and long term, induces high performance by companies, encourages investors to invest their savings in listed securities with satisfactory returns, and promotes good corporate governance and market integrity and transparency. The BVM is the emblematic and essential institution in the capital market, which is why it is vital to strengthen its intervention capacity,” he said.
The objective is to “ensure the strategic repositioning of the BVM, making it an ethical business centre and an effective barometer of the country’s economy”.
The new strategic plan, Salim Valá explained, is based on five “fundamental” pillars, such as the dynamization of the stock and bond markets, technological modernization, the development and commercialization of new products, services and financial instruments, the promotion of the regulatory framework, coordination and articulation, and institutional capacity and visibility.
The objective is to ensure, during this period, “the attraction of companies” of “different sizes and areas of activity, and that are well managed, profitable and with business ethics”, but also of “national and foreign investors”, and to promote the registration of securities and holders with the BVM.
The plan also foresees the adoption of “innovative market development mechanisms” to “provide greater trading volume and liquidity, through the introduction of new products, services and financial instruments”.
According to Salim Valá, the BVM’s strategic plan aims to “adapt the technological trading platforms and the CVM to recognised international standards”, aiming to “process new business quickly and ensure interconnection with regional stock exchanges and other financial markets of choice”.
Also on the table, he pointed out, is the acquisition of a “building suitable for the operation of a rapidly growing stock exchange”.
The BVM’s market capitalisation grew by almost 11% in the first half of 2024, year-on-year, and is now worth the equivalent of 28.6% of Mozambican GDP, Lusa has previously reported.
According to data from the institution, this market capitalization – an approximation of the market value of companies and securities – reached 203,852 million meticais (€3,001 million) in the first six months of the year and registered a growth of 102.2% in turnover, to 16,697 million meticais (€245.8 million).
Although the number of listed companies remained at 16 , the number of corporate debt issues, relating to bonds and commercial paper, rose 20%, from 25 to 30, the number of listed securities rose from 84 to 92 securities (+9.5%); total financing to the economy grew 8.6%, to 338,679 million meticais (€4,986 million euros); and the number of securities and holders at the CVM rose from 274 to 301 securities (+9.9%) and from 25,470 to 26,074 holders (+2.4%).