Out of the 13 companies listed on the Mozambique Stock Exchange (BVM), none of them are in the transportation and logistics sector.
The BVM aims to rectify this situation, especially considering that it is a sector with tremendous potential and has demonstrated remarkable dynamism in recent years.
“We have been very focused on physical infrastructure, and rightfully so, but let us not overlook the importance of institutional infrastructure,” said BVM President Salim Valá during a meeting with logistics and transportation industry entrepreneurs at the panel on “Transportation versus Economic Development” held on July 14, 2023, in Maputo, during the Business Forum organized by the Mozambique Chamber of Commerce and CIT.
Several independent studies, as well as those conducted by the BVM itself, reveal that many companies do not use the Capital Market for financing due to institutional weaknesses, particularly in terms of governance, management, audited accounts, transparency, public scrutiny, and business ethics.
“We are available to work with companies in the sector to encourage them to use this more cost-effective financing alternative, especially for projects that require significant resources in the medium and long term,” said Valá.
He added, “Working with the BVM is not a lengthy, cumbersome, or burdensome process. We need to demystify the perception that the Stock Exchange is a daunting prospect! Let us follow the example of METROBUS, which has already expressed its intention to list on the BVM.”
“The Third Stock Market, launched in November 2019, is an incubation market that allows companies to list and, within a period of 2-3 years, have audited accounts and proceed with shareholder dispersion.
The BVM asserts that transportation companies can take advantage of this existing window of opportunity, as four companies have already been listed on this Market.
“The BVM can finance viable companies in the transportation and logistics sector, and in the process of meeting the admission requirements, companies enhance their governance, management, visibility, and attractiveness to investors and the market,” stated Salim Valá, addressing logistics and transportation industry entrepreneurs and investors in particular.