The Mozambique Stock Exchange (BVM) recently held a seminar on the capital market in the city of Beira, Sofala province, which brought together businesspeople from all provinces of the country, with the aim of presenting its services and products to businesspeople.
According to the chairman of the board of directors of BVM, Salim Valá, the institution he heads is an alternative instrument of funding for companies with lower costs, but in return these must be well governed and managed, have good economic and financial health and audited accounts to certify their transparency.
The meeting was held at a time when BVM has the challenge of convincing private companies based outside the city of Maputo to join the institution. In this regard, Salim Valá assured the businessmen that BVM is a kind of “trademark and mechanism that confirm the reputation of the company”, with multiple advantages that are not limited only to financing facilities.
“The benefits are the possibility of expanding the visibility of the company, allowing it to attract investors, disperse the investment risk, benefit from incentives granted by the State for companies and investors that use BVM, as well as facilities in establishing business partnerships,” he listed.
Salim Valá referred that BVM currently has 13 listed companies, with a market capitalisation of 25.47% of the Gross Domestic Product (GDP), and three markets, namely the official listings market (for the State and large companies), another for Small and Medium Enterprises (SMEs) and the last market geared towards the incubation, preparation and transition of companies to the Official Stock Exchange Markets.
“Do not believe the prejudices, myths and fallacies about the Stock Exchange. There is a lot of misinformation circulating that the Stock Exchange is a difficult mountain to climb. Talk to the managers of listed companies and you will see that it is not a long, slow and costly process,” said the source, explaining that, “obviously being a structured and regulated market, there are requirements to be met, but this is within the reach of several companies, including SMEs. The Exchange is available to receive companies from various business sectors and located in different parts of the country.
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The Chairman also said that the use of institutional partnerships could help to attract companies from outside the country’s capital to the capital market.