The executive director of the Mozambique Stock Exchange (BVM), Alcino Michaque, emphasised the importance of the capital market as a financing alternative for Mozambican companies. The speech took place during the 17th edition of the Economic Briefing, held this Thursday (20) in Maputo, organised by the Confederation of Economic Associations of Mozambique (CTA), under the theme Business Dynamics in the Fourth Quarter of 2024 and Analysis of the Economic Situation.
Michaque emphasised that, unlike other sectors of the economy, BVM saw growth in the last quarter of 2024, driven by the debt segment. ‘Our market, due to its nature and characteristics, had an upward trend during the fourth quarter, somewhat different from what other sectors showed,’ he said.
The executive director explained that the debt segment continues to be a determining factor in the dynamics of the stock market, mainly due to the continued issue of government bonds, which has had a positive influence on BVM’s indicators. ‘The major indicators of our stock exchange performed positively, namely market capitalisation and the ratio of market capitalisation to GDP, which reflect the dynamics of the year, especially the last quarter,’ he said.
However, BVM has seen difficulties in new companies entering the market. Although some companies have shown interest, the post-election crisis has created an environment of uncertainty that has prevented new listings. ‘Most of the companies that were on the verge of coming to the market were close to doing so in the last quarter, but the post-election crisis prevented this from happening,’ explained Michaque. As a result, the number of listed companies remained at the 16 that were already listed at the beginning of the year.
In addition to market capitalisation, other positive indicators included the number of holders and individuals registered with the central real estate securities office, reflecting the evolution of the market. Michaque emphasised that BVM continues to encourage companies to explore the stock exchange as a financing alternative, in a context in which the Mozambican business fabric is facing economic difficulties.
‘We want entrepreneurs to consider the various financing alternatives available on the capital market, namely going public and issuing medium-long term corporate bonds or short-term commercial paper,’ he said.
BVM emphasises the need to diversify funding sources, promoting the capital market as a viable solution for companies looking for alternatives to traditional bank credit. ‘It’s essential that entrepreneurs realise that the stock exchange can be a strategic option for raising funds and expanding their businesses, reducing their dependence on bank financing,’ concluded Michaque.
The debate on the role of the Stock Exchange in boosting the Mozambican economy took place in a context of economic uncertainty and structural challenges, highlighting the need for greater coordination between the public and private sectors to strengthen the capital market and boost business growth.
The 17th edition of the Economic Briefing brought together various economic players, policymakers and businesspeople to discuss the dynamics of the fourth quarter of 2024 and the economic climate, at a time when the Mozambican economy is facing complex challenges, requiring greater coordination between the public and private sectors to implement structural reforms.
