The Mozambique Stock Exchange (BVM)
Increasing Private Sector Participation in the Stock Exchange in Mozambique. 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. The BVM is also a mechanism for raising capital. However, in current circumstances it is not fulfilling this mission, since all potential participants in the capital market--issuers, intermediaries and investors-- are characterized by low levels of activity and awareness. A successful reform must spur all of these market participants to higher levels of activity. This report contains a series of recommendations to accomplish this aim.