Mozambique: Transformation of BVM to ensure increased revenue – Salim Valá, president of the institution

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Mozambique: Transformation of BVM to ensure increased revenue – Salim Valá, president of the institution

4:17 CAT | 30 Dec 2024

File photo: Noticias

The transformation of the Mozambique Stock Exchange (BVM) from a Public Institution to a Limited Company aims to maximize the institution’s income and, consequently, improve state revenue.

Through this transition, initiated last year, the goal is to attract economically significant entities such as banks, insurance companies, mobile telecommunications, extractive industries, business and port concessions, in a project that aims to increase the current 16 listed companies to at least 30 by 2028.

These perspectives were recently shared by Salim Valá, president of BVM, during a meeting organized by the private sector. He also noted that the transformation will ensure greater autonomy and independence in management, as well as enhance credibility in the market.

“There is a difference between being a public institution and being a company. A company goes to the market, seeks profits, and brings dividends to shareholders,” he said.

Valá explained that with BVM operating as a company, it will be easier to collaborate with individual institutions, generate greater liquidity for listed securities, and align with the trends of regional and international markets. In this regard, he assured that technological transformation, modernization, and strengthening of auditing and risk management conditions are underway.

“The main strategies of our strategic plan include increasing and energizing the stock and bond market. Here, we face the challenge of stimulating the secondary market. Our platform is still dominated by treasury bond issuances, and we aim to change this trend,” he stated.

In the medium term, the objective is to introduce new financial products, services, and instruments. Efforts are underway with the Bank of Mozambique to improve the regulatory framework, alongside coordination with various participants in the capital market ecosystem.

There is also interest in maximizing BVM’s visibility and completing the introduction of sustainable bonds, whether municipal, rental, university, deposit certificates, or through the Commodity Exchange or the Ministry of Industry and Commerce.

Currently, 16 companies are listed on BVM, with a market capitalization of 207 billion meticais, representing 28.8% of the Gross Domestic Product.

Source: Noticias