The establishment of a Development Bank in the Community of Portuguese Speaking Countries (CPLP) will complement and give a new impetus to other sources of financing such as bank credit, risk funds, capital markets, as well as innovative mechanisms for companies and entrepreneurs operating within this organization.
The idea was defended a few days ago in Malabo, Equatorial Guinea, by the Chairman of the Board of Directors (PCA) of the Mozambique Stock Exchange (BVM), Salim Valá, in a panel that discussed the theme “Investment Routes and Markets”, during the first summit of the Business Confederation of CPLP, which ended last Friday.
On the occasion, Salim Valá assured the businessmen present that BVM is prepared to receive businessmen and investors from the community.
According to Valá, his institution is experiencing a frank growth. In fact, even with the economic crisis aggravated by the effects of Covid-19, it currently has a market capitalization of 17.8 percent and with ten listed companies, compared to four in 2016.
The source also noted that the state grants a tax benefit of 50 percent on dividends, exemption from stamp duty on stock exchange transactions and the possibility of expatriation of capital for foreign investors.
In July 2018, a protocol between the CPLP Stock Exchanges was initialed in Sal Island, Cape Verde, on the sidelines of the Summit of Heads of State and Government of the community.
This instrument is being operationalized between the Stock Exchanges, particularly, in the areas of exchange ofexperience on human resource capacity building, regulatory framework, technological basis, promotion of financial literacy, introduction of new products and services and strategies to attract non-resident investors.
BVM’s PCA alerted the businessmen about the existing opportunities in Mozambique, related to the exploitation of the demographic and digital dividend, as well as financial inclusion, inviting businessmen from the CPLP space, to invest in the country.
“The vitality and sustainability of the financial system demands a more robust and vibrant capital market, so that the Stock Exchange can be an effective business center with ethics, and thus can better oxygenate the entrepreneurs that have good investment projects,” he said.
Salim Valá referred that the Government’s policy is oriented to the diversification of the economy and its structural transformation, through industrialization, highlighting the need to enhance the “CPLP Brand and Products”, as something distinctive and peculiar of this space.
He also added that despite the high potential in the area of “Oil & Gas”, Mozambique does not want to be too dependent on mono-production and mono-export, and thus be vulnerable to price fluctuations in international markets, preferring to choose to build a powerful and diversified economy.
