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Angolan Capital Market Traded 900 B Kwanzas Up to August

Angolan Capital Market Traded 900 B Kwanzas Up to August

Transactions on the Angolan capital market until August totalled 907.33 billion kwanzas (2.2 billion euros), of which around a third were traded last month, an official from the Capital Markets Commission announced.

According to Johny Soki, director of the studies and strategy office of the Capital Market Commission, the figure was influenced by the over 300 billion kwanzas traded in August, a record in terms of trading volume that was related to “the debt softening policy,” put into practice by the Finance Ministry.

“The aim is to replace instruments indexed to exchange rates and others with short maturities with others with longer maturities in order to level out the debt profile,” Soki explained on the sidelines of a meeting organised by the Capital Market Commission.

The transactions were made between the Public Debt Management Unit represented by the National Bank of Angola (BNA) and market players and were registered on the Angolan Debt and Securities Exchange (Bodiva) and thus the impact was reflected in the volume traded, he said.

In 2021, the volume of trading on Bodiva totalled around 800 billion kwanzas (1.9 billion euros).

Asked about the reasons why Angolan companies do not yet resort to the capital market as a source of funding, opting mainly for banking, he said that it was mainly due to the fact that they still have little information.

“Companies and investors are now discovering the capital market, that this segment exists, and so we are seeing gradual growth,” Soki noted, adding that companies currently have more instruments for funding themselves, such as issuing shares and bonds.

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“These are the vehicles that companies resort to when they want to receive financing from lenders,” he said.

“Today it is already functional, we already have a company that successfully raised money via the stock exchange (Banco Angolano de Investimento), we have a process underway (Banco Caixa Geral Angola) and we have a project to boost issuers to attract more companies,” Soki said, admitting that by the end of the year more companies would be financed this way.

Lusa

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