The chairman of the Mozambique Stock Exchange (BVM), Salim Cripton Valá, said this Thursday, 22 February, that restrictive monetary policies continued to condition credit to the economy in the fourth quarter of 2023, in a context where high interest rates made credit very expensive for the business sector in general.
Speaking at the 15th edition of the Economic Briefing organised by the Confederation of Economic Associations of Mozambique (CTA), the head of BVM said that the decision by the Monetary Policy Committee of the Bank of Mozambique to lower the MIMO rate to 16.5% was positive, “which opens up good prospects for the country in general and for the business sector in particular”.
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The source also pointed out that in the fourth quarter of 2023 there was an evolution in the main macroeconomic indicators, in particular turnover, market capitalisation and the liquidity index, which saw notable growth.
As for the companies listed on the BVM, Salim Valá said that last year was marked by the admission of four companies – Weiyue, Zaya Group, Trassus and RGS Agro – as well as the encouraging situation of the company Rede Viária de Moçambique (REVIMO), which moved from the third to the second stock market.
The financial sector continues to be the one that makes the most use of financing via the stock market, perhaps because it has a better grasp of how the market works, said the BVM manager.
Valá believes that the business incubator launched by the CTA could contribute to the expansion of sectors that finance themselves through the capital markets. “This and other factors are why BVM expects the number of listed companies to rise to 30 by the end of 2028, i.e. in the next four years,” he said.
