Last Updated: 24 May 2019
The Mozambican Stock Exchange (BVM), in partnership with Standard Bank, organized a Workshop on Capital Markets on May 17 in Maputo. The aim of the initiative was to promote this alternative source of financing and diversification of savings to its customers.
This was a complementary initiative of the efforts made by the Mozambique Stock Exchange to promote the capital market in the country, which is still in its infancy.
The organization of the event results from the realization that the Mozambican capital market is still far from desirable, as many of the entrepreneurs are not financed via the Stock Exchange and investors have nowhere to put their applications because of the lack of stock market bonds.
In this sense, and as a partner of its clients and with experience in structuring this kind of operations, Standard Bank considered it advisable to advise them to look for alternative sources of financing and to offer security, namely the capital market.
For the President of the Board of Directors of BVM, Salim Valá, the initiative of Standard Bank will help to galvanize the capital market, making it more dynamic and a preferential source of financing for national companies.
As Salim Valá explained, the level of stock market capitalization is still low (around nine percent of GDP - Gross Domestic Product), and therefore there is a need to reverse this scenario. He also said that in the next 15-20 years the capital market may be the main source of financing for companies, as admission requirements are not "a seven-headed animal" as is often thought.
"We want to significantly increase the level of market capitalization, and our perspective is that by 2022 we will reach 21%. We currently have eight listed companies and we expect to increase to 10 by the end of this year. In short, we want to increase turnover, liquidity in the market, as well as the number of securities quoted on the stock exchange. "Everything is being done so that in the future, BVM is the effective thermometer that measures the business environment and trends of the economy in Mozambique, Emphasized the Chairman of the Board of Directors of BVM.
"There are countless advantages in using the capital market as a source of financing. Being listed on the Mozambican Stock Exchange helps create market visibility, potential share appreciation, better interest rates on bond loans, and valuation of the company as a result of market and investor confidence, which is now seen as a transparent company and that it respects the principles of corporate governance, "explained Fernando de Oliveira, manager of Investment Bank of Standard Bank.
During the event, Bayport Mozambique, an institution that provides credit for civil servants and has been active in the domestic market since 2012, shared its experience in financing through the Mozambique Stock Exchange, whose operation was structured by Standard Bank.
"It is a very important tool, which expands the financing opportunities of companies that want to be in the market, thus helping to transform our economy. We have used the BVM to ensure our growth and to continue to expand our presence in the country, with Standard Bank playing an important role in the operation, including in legal aspects, "said Bayport Mozambique General Manager Michael Mocke. companies should take advantage of the advantages of financing through the capital market.
Bayport Mozambique entered the capital market in 2016 and has already issued a total of five bonds totaling more than 1.5 Billion Meticais, having received the "Best Local Currency Bond of the Year" award for 2018, awarded by GFC Media Group.Photo Events