On July 24 of the current year, the Mid-Term Review of the BVM Strategic Plan (2017-2021) was held in Maputo. Where the state of play of actions and initiatives developed by the BVM and the follow-up of the activities to be carried out were presented. carry out by 2021, including the exercise of identifying the aspects to be improved in order to boost the stock market in Mozambique.
On the occasion, the BVM PCA, Salim Cripton Valá informed that of the 22 initiatives of the Strategic Plan, 11 were carried out and concluded with positive results (50%), 10 are still ongoing (45%), and one (1) started but is on time, representing 5%.
It also highlighted some indicators, namely the fact that 9 companies are listed, thus experiencing a 125% growth over the last two years, the market capitalization is 103,066 million MT (U $ D 1,657 million), the market capitalization ratio stands at 10.1% of GDP and projected to 21% by 2025. The average of the last two years of turnover was 3,900 million MT, the BVM financed the economy of 119,184 million MT ( $ 1,916 million), and to date 154 titles are listed.
On the occasion, Valá announced that BVM will have the Stock Exchange Index, and that it will be useful for investors, because it will allow them to follow the behavior and trends of the stock market. “The stock index helps gain greater national and international exposure, broadens the visibility of the stock market, attracts foreign investors to the stock market, and will bridge a gap in compliance with the SADC Finance and Investment Protocol.” Other exchanges such as Johannesburg, Namibia, Zimbabwe, Malawi, Tanzania, Botswana, Zambia and Mauritius, for example, already have stock indices, ”Valá added.
Investors and other economic agents will have IBVMGlobal, IBVMAcções and IBVMObrigações available on a daily basis. This way, the Mozambican and non-resident investor will have relevant and up-to-date information on the market, as has long been the case with users of the New York, London, Tokyo, Hong Kong, Shanghai, Johannesburg stock exchanges, among other financial markets. of reference.
In turn, FSDmoc Executive Director Esselina Macome reiterated that FSDMoç’s support to BVM has been made possible by funding from the British and Swedish Governments, which demonstrate their commitment to capital market development and is a priority on the agenda. donor vision and programs, improve levels of financial inclusion in the country by establishing partnerships and strategic interventions that promote greater inclusion of disadvantaged / excluded groups, specifically women, youth, small-scale producers and micro , Small and Medium Enterprises.
“In collaboration with the BVM, we have observed a proactive nature of this institution, and for this reason, I would like to commend the progress made in the last two years since the launch of this instrument, especially the dissemination campaigns, the review of SME listing requirements. and the increase in the number of companies listed on the stock exchange ”. said Esselina Macome.
In another development, Kabir Ibrahimo, CTA Vice President who spoke on behalf of CTA, praised BVM’s progress, but suggested legal reforms to allow greater adherence to the Stock Market. For CTA, it has been noted that SME adhesion to the Second Market is still very weak, and pointed out as a cause of this the low level of financial education and the weak corporate management capacity of companies.
According to Hibrahimo, the costs of admission, readmission and maintenance of securities on the stock exchange, the taxation regime applied to transactions carried out in this market segment, can create a disincentive for SMEs to join the stock exchange, mainly because the cost and taxation variables constitute generally one of the main obstacles to the development of the Mozambican private sector.
However, the CTA proposes the implementation of some reforms, such as the revision of the BVM Second Market Regulation, no. 2 / GPCA / BVM / 2010), to allow the reduction of fees, as well as the revision of Articles 57 and 67 of IRPC code and IRPS respectively, to allow for the introduction of a special tax regime for the second market which guarantees the reduction or exemption from the payment of the liberalization rate in transactions carried out in this market segment.
On behalf of the Ministry of Economy and Finance, Rogério Nkomo said that the actions taken by BVM are aligned with the objectives set out in the government’s strategic instruments, namely the Strategy for the Development of the Financial System 2013-2022 and the National Strategy for Financial Inclusion. 2016-2022. “The capital market is making a significant contribution to the country’s economy by promoting actions and initiatives.