Mozambique Stock Exchange Embarks on Ambitious Transformation

  Photo:Noticias

The Mozambique Stock Exchange (BVM) is undergoing a significant transformation from a public institution into a Limited Company, with the primary aim of boosting its income and enhancing state revenue. This strategic shift, which began last year, is set to reshape the landscape of Mozambique's capital market by attracting key players like banks, insurance companies, mobile telecoms, extractive industries, and port concessions.

Salim Valá, the president of BVM, highlighted these ambitions during a recent private sector meeting. He emphasized that this transition will not only attract more significant economic entities but also aims to triple the number of listed companies from 16 to at least 30 by 2028.

"This transformation is about giving BVM the autonomy and independence it needs to manage more effectively and gain credibility in the market," Valá explained. He pointed out a fundamental shift in operational philosophy: "A company seeks profits and dividends for shareholders, unlike a public institution."

The conversion to a company structure is expected to:

• Enhance collaboration with individual institutions.
• Increase liquidity for listed securities.
• Align BVM with regional and international market trends.

Valá also discussed ongoing efforts to modernize the exchange, including technological upgrades and bolstering auditing and risk management. A key part of BVM's strategic plan is to invigorate both the stock and bond markets, with a particular focus on stimulating the secondary market which has been largely dominated by treasury bond issuances.

Looking forward, BVM plans to introduce new financial products, services, and instruments in collaboration with the Bank of Mozambique to refine the regulatory framework. There's a push towards increasing BVM's visibility and introducing sustainable bonds for various sectors like municipalities, universities, and through the Commodity Exchange.

Currently, BVM hosts 16 listed companies with a market capitalization of 207 billion meticais, accounting for 28.8% of Mozambique's GDP. This transformation is seen as a pivotal step towards a more dynamic and influential capital market in Mozambique.

Source: Noticias