The Chairman of the Mozambique Stock Exchange (BVM), Salim Valá, advised the transport and logistics sector to bet on cheaper and alternative financing as a way to expand its business and reach other markets.
Speaking recently in Maputo, at the Business Forum promoted by the Chamber of Commerce of Mozambique in partnership with the International Chamber of Transport Industry (CIT), more specifically in the panel on “Transport versus Economic Development”, the official showed concern that, of the 13 companies listed on BVM, none of them are part of the transport and logistics sector, stating that it is crucial that a correction of this situation be made.
“Several independent studies and BVM itself reveal that many companies do not use the capital market to finance themselves because they have institutional weaknesses. We are available to work with companies in the sector so that they start using financing alternatives that are cheaper, especially for projects that require high volume of resources and in a medium and long term perspective”, he said.
According to Salim Valá, working with the Stock Exchange is not a long, time-consuming and costly process. “We have to demystify the view that the BVM is a seven-headed beast, not least because the transport and logistics sector has enormous potential and has been showing remarkable dynamism,” he stressed.
According to the Chiarman, companies operating in that sector can take advantage of the window of opportunity in the “Third Stock Exchange Market”, launched in November 2019, which allows companies to list themselves and, within a period of two to three years, to have audited accounts and proceed with shareholder dispersion.
“The BVM can finance viable companies in the transport and logistics sector and, in the process of meeting the admission requirements, companies strengthen their governance, management and increase their visibility and attractiveness to investors and the market,” he concluded.