The Mozambique Stock Exchange (BVM) has aroused the curiosity of many national entrepreneurs. For example, those from Sofala province showed interest in learning how the BVM works and how they can access the services, products and financial instruments available on the capital market, better exploring the opportunities that exist through alternative financing, little known and still little used by Mozambican economic agents.
In view of this, during his intervention at the Economic Briefing held last week, the Chairman of BVM, Salim Valá, said that BVM is a serious institution, which basically deals with companies that operate well, are profitable, organised, transparent, and want to do business ethically.
Under the theme “Stock Exchange Market in Mozambique: Dynamics and Main Trends in the 1st Quarter of 2022”, the speaker said that although the performance of the Stock Exchange in the 1st Quarter of 2022 was not at the level that was foreseen in the medium term planning, it recorded a positive evolution in its main stock exchange indicators compared to the same period in 2021.
” We highlight the 148% increase in turnover, the liquidity ratio by 115.2%, financing to the economy by 24.6%, securities registered with the Mozambican stock market by 15.1%, market capitalisation and its ratio over Real GDP had similar growth of 8.1%. The capital market and, in particular, the stock exchange were not immune to the economic shocks of recent years, but they endured the negative economic consequences of the Covid-19 pandemic, showing resilience by managing to maintain a positive evolution in the most important stock market indicators,” he said.
Despite these events, Valá stressed that BVM wants to be an effective barometer of the economy, but that of the 100 largest companies in Mozambique only five of them are listed on the Exchange and thus it is not possible for BVM to fully capture the dynamics and trends of the real economy.
“As a stock exchange, we are positioned and prepared to do our part, and we are counting on the brave Mozambican businesspeople and entrepreneurs, particularly those of Sofala Province, a very strong, very resilient and very entrepreneurial province,” he emphasised.
In his speech, he highlighted the fact that funding to the private sector continues to be below its potential, as it constitutes less than 20% of the volume of funding obtained through the BVM, noting that this deserves to be a reason for reflection by Mozambican businesspeople, who are the ones who can change this scenario.
“Companies should use the Stock Exchange tool which, as well as being a concrete alternative source of funding, brings visibility to listed companies, sends a signal of credibility, makes it possible to attract investors to the company, makes it possible to disperse the investment risk, facilitates its internationalisation and, being listed on the exchange, it is easier for domestic companies to establish partnerships with businesspeople from other financial centres,” he said.
