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BVM’s Market Capitalisation Already Accounts for 28.8% of GDP, Salim Valá Reveals

BVM’s Market Capitalisation Already Accounts for 28.8% of GDP, Salim Valá Reveals

The Mozambique Stock Exchange (BVM) reached a significant milestone in the third quarter of 2024, with its market capitalisation representing 28.8% of the country’s Gross Domestic Product (GDP).

The information was shared by the chairman of the board of directors (chairmans) of BVM, Salim Valá, during the Economic Briefing organised by the Confederation of Mozambican Economic Associations (CTA). The event, held under the theme Business Dynamics in the 3rd Quarter and Analysis of the Current Climate, highlighted the performance of the capital market in a context of global and domestic economic challenges.

According to Salim Valá, the result reflects not only the continued growth of the capital market, but also the resilience of the Mozambican business sector in the face of adversities such as the economic slowdown, increased geopolitical tensions and controlled inflation. ‘This performance is the result of joint efforts between BVM, entrepreneurs and investors, who have explored financing and innovation opportunities to boost the country’s economy,’ he said.

Since 2016, BVM’s market capitalisation has been on an upward trajectory. That year, the value corresponded to 10.1 per cent of GDP. The stock exchange currently has 16 listed companies, and the number of holders registered with the central securities depository exceeds 26,000. These statistics, according to Valá, are indicative of constant progress, although the market still faces challenges in diversifying and boosting the secondary segment.

During his speech, the chairmans also highlighted the stock exchange’s strategic plans for the coming years, which include the introduction of new financial products, such as sustainable bonds, and the technological modernisation of the trading system. ‘We want to make the market more attractive and accessible, not just for local companies, but also for international investors,’ he emphasised.

The CTA briefing also served as a platform to discuss the impacts of external shocks on the national economy, including volatility in commodity prices and high transport and fuel costs. Despite this, the indicators for the third quarter of 2024 showed significant growth in areas such as liquidity and turnover, a positive sign for the Mozambican capital market.

With ambitious goals of reaching 30 listed companies by 2028 and achieving a market capitalisation equivalent to 35% of GDP, BVM is seen as one of the strategic pillars for Mozambique’s sustainable economic development.

‘This performance is not just a number. It represents confidence in the market and the ability to overcome challenges. The stock market is a reflection of our economy and our collective resilience,’ concluded Salim Valá.

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