The Mozambique Stock Exchange (BVM) has set itself the goal of almost doubling the number of listed companies by 2028, from 16 to 30, and increasing market capitalisation to the equivalent of 35% of Gross Domestic Product (GDP), in an effort to strengthen the capital market and boost the growth of the real economy, as reported by Lusa.
The goals were defined in BVM’s new strategic plan for the 2024-28 period, as explained by the chairman of the institution’s board of directors, Salim Valá. Currently, BVM’s market capitalisation represents around 28.54% of GDP, and the inclusion of more companies in the market is seen as one of the main ways to raise this figure, contributing to the financing of the national economy and attracting more investors.
The new strategic plan also aims to almost double the number of holders registered with the Central Securities Depository (CVM), from the current 26,305 to around 50,000 investors by 2028. Valá emphasised that these goals are achievable through the joint efforts of all those involved in the financial ecosystem, drawing on the experience and lessons accumulated over the 26 years of BVM’s existence.
‘We are convinced that the financial system can be galvanised by a capital market that encourages medium and long-term productive investment, promotes good corporate governance and stimulates savings and investments in listed securities,’ he said. Valá also stressed the importance of BVM as an ‘ethical business centre and an effective barometer of the Mozambican economy’.
BVM’s strategic plan is based on five fundamental pillars: boosting the stock and bond markets, technological modernisation, developing new financial products and services, promoting a robust regulatory framework and strengthening institutional capacity.
Among its operational goals, BVM aims to attract companies of various sizes and sectors of activity, with an ethical and profitable management profile, while at the same time attracting both domestic and foreign investors. To this end, it plans to develop innovative mechanisms to increase trading volume and market liquidity by introducing new financial products.
Another objective will be to strengthen the technological infrastructure, seeking to align the BVM and CVM trading platforms with international standards, which will make it possible to speed up the processing of business and improve interconnection with other stock exchanges in the region. Mr Valá also said that the acquisition of a building of BVM’s own is planned, with the aim of adapting the physical space to the stock exchange’s projected growth.
Recent BVM data indicates that in the first half of 2024, market capitalisation grew by almost 11% year-on-year, reaching a value equivalent to 28.6% of GDP. During this period, turnover on the stock exchange increased by 102.2 per cent to 16.6 billion meticals.
While maintaining the number of shares listed at 16, BVM saw an increase in the number of issues of corporate debt and other securities, contributing to total financing for the economy which, by the end of the six-month period, totalled around 338.7 billion meticals. This growth, according to the institution, is a positive indicator of confidence in the national capital market.
BVM believes that by implementing its strategic plan, it will be able to consolidate its position as a benchmark institution in the Mozambican financial market, expanding its impact on the economy and on the development of a solid and inclusive capital market.
