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Mozambique Stock Exchange Abandons State-Owned Status and Becomes a Public Limited Company

Mozambique Stock Exchange Abandons State-Owned Status and Becomes a Public Limited Company

A few months before completing 25 years of existence, the Mozambique Stock Exchange (BVM) has just become a public limited company (SA). This is the materialisation of an old objective but which became more expressive at the conference held by the BVM in October last year when it appealed to the Government about the need for a change in the legal format for its operations.

The announcement of this change was made on the morning of Thursday, 27 April, by the chairman of the board of directors of BVM, Salim Valá, at the opening of a training workshop for journalists from the economic area, which is being held today and tomorrow in Macaneta, Marracuene district.

According to Salim Valá, on ceasing to be a public institute and becoming a public limited company, BVM is now an autonomous company (although initially it will be managed by the state) and marks an important step towards its monetisation, as happens in other regions of the world.

The new status, according to the official, will allow BVM’s services to become a profitable business, ensuring that the institution is sustainable and able to strengthen its growth targets and performance of its mission to serve as a driver of business activity in the country.

“We will have more autonomy, more incentives for innovation, greater capacity to attract investors and to attract and retain talent,” he said.

Salim Valá said that BVM had made significant progress over the last few years and now had 13 listed companies, a market capitalisation of 25 percent (173.6 billion meticais, equivalent to 2.6 billion dollars), over 7 billion meticais in turnover, 302 listed securities and 247 securities registered with the Central Securities Depository.

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Despite this progress, Valá said that the current figures were far short of what would be desirable for a stock exchange that was more active in the economy, and thus promised many more changes in the near future in order to encourage more companies and the public to invest in the capital market.

On this training initiative for journalists on matters related to the capital markets, Salim Valá said that the initiative is part of BVM’s financial education activities. The training, which is now in its third edition, brings together more than 30 journalism professionals.

“The idea is to train journalists so that they understand how the capital market works and its advantages”, stressed the Chairman.


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