The Mozambique Stock Exchange (BVM) has witnessed impressive growth in its capitalisation, with an increase of almost 200% since 2016. This notable growth was announced by the chairman of the BVM, Salim Valá, in an interview with the Lusa news agency. This development reflects the strengthening of Mozambique's capital market and growing investor confidence.
According to Valá, market capitalisation is currently influenced in large part by Treasury Bonds, which account for around 85% of the total. However, the chairman of the BVM stressed the need to diversify operations beyond these instruments. The aim is to create a more balanced and resilient market, capable of supporting different types of investment.
The growth in market capitalisation in Mozambique results from the appreciation of the equity market and the bond markets, including Treasury Bonds, Corporate Bonds and Commercial Paper. Valá acknowledged a notable increase since 2016, with growth of 197.3% up to the end of 2023. This growth is an indicator of the resilience of Mozambique's capital market, even in the face of adverse economic factors.
The chairman of the BVM also mentioned the goal of raising the ratio of market capitalisation to GDP to 35% by the end of 2028, in line with the Sub-Saharan African average. The BVM's capitalisation at the end of 2022 reached 164,290 million meticais, rising to 183,989 million meticais the following year.
This significant growth in the BVM's capitalisation represents a positive development for Mozambique's economy, indicating greater openness and attractiveness to domestic and international investment
