Increasing Private Sector Participation in the Stock Exchange

5 Sep, 2017 – 12:04 pm

Executive Summary

The Mozambique Stock Exchange (BVM) is very small with only five listed companies and very little trading. Market capitalization/GDP and turnover/GDP ratios are among the lowest in the world, and little capital has been raised through new issues in the past few years. The newly installed management team at BVM is determined to make the market larger and more active in order to make it an effective source of finance in the next phase of the country’s development.

There is a considerable overlap between the objectives of the BVM and the SPEED+ Program’s objectives: both aim to improve the business environment by making the corporate sector more transparent and both aim to enhance protection of minority investors. The BVM seeks to accomplish these aims since it can only build a thriving equity market if the entire business sector is more transparent, laws are enforced and investors have confidence that their interests are protected.

Both the SPEED+ Program and the BVM aim to secure better protection of the rights of minority investors through revision of present laws. Other areas where the objectives of the BVM and SPEED+ coincide are a) upgrading accounting standards, b) development of credit bureaus and c) reform of bankruptcy law.

Download the full report here:

SPEED+017-R010 BVM Stock Exchange Report Draft 2017-09-20

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