The Angolan Debt and Stock Exchange (BODIVA) plans to open seven thousand custodial accounts annually, increasing from the current 30 thousand to 58 thousand and 389 accounts, as stated in the institution’s 10-year report
In the presentation of the BODIVA Markets report, Walter Pacheco also made it known that the aforementioned institution plans to increase the value of its transactions from 8.4 billion Kwanzas to 9.4 billion Kwanzas, assuming a growth of 9% per year in the amount held in custody. . Regarding BODIVA businesses, as stated in the Market report, in 2023, more than five thousand businesses were valued at 7.8 billion Kwanzas.
When speaking at the fifth edition of the BODIVA Forum, held recently in Luanda, the director of the Negotiations Department, Raul Diniz, emphasized that market capitalization had a weight on the Gross Domestic Product (GDP) of 24.22% (61,012 billion) in 2023, compared to 7.27% (54,578 billion) in the previous year.
He highlighted that during the period under review there was a devaluation of the Kwanza of around 65%, as well as a 10% drop in the price of a barrel of oil, with a downward trend. The privatization of 30 percent of BODIVA’s shares is expected to take place later this year. This measure is part of the Strategic Plan, which foresees full privatization by 2027 within the framework of the Privatization Program (PROPRIV).
Fundraising
In reaction, economist Eduardo Manuel considers that the launch of the commodities exchange and the partial privatization of BODIVA will contribute to the growth of the securities market in Angola, as economic agents will have more options both for investments and for collecting money. funds. The partial privatization of BODIVA, according to Eduardo Manuel, in addition to giving greater dynamism to the management of this institution, will contribute to raising financial resources for the Angolan State that can be used to finance the different investment projects that exist in the portfolio.
Regarding the prospect of opening seven thousand custodial accounts, the expert highlighted that this demonstrates that BODIVA has been monitoring companies’ interest in financing themselves, without resorting to financial markets. These companies involved, he continued, by obtaining funds through the issuance of bonds will be able to invest and expand their activities without the need to depend on their customers to collect revenue for this purpose.
“An increase in the capitalization of the Angolan financial market is expected”, he emphasized. With regard to challenges and achievements, Eduardo Manuel clarified that the challenges that BODIVA will face have to do with the fact that there is a scenario, where there is a strong demand for financial resources outside the financial sector, by companies, to develop their business, so they will have to be prepared at an institutional level to receive requests and manage the companies’ custody accounts.
Economist Marlino Sambongue also emphasized that the prospect of an annual increase in the opening of custody accounts is a sign of a greater number of registrations that identify the holders of Securities registered with the Central Securities Exchange of Angola, which means a greater number of investors in the market of securities and consequently greater dynamism in the securities market as an integral part of the Angolan financial market.
To achieve the goal of increasing trading volumes, BODIVA, from an economist’s perspective, faces the challenges of continuing to innovate in terms of products and services, technological infrastructures in particular for trading and post-trading; the adoption of international accounting standards, qualification of its professionals with a view to promoting the inclusion and financial participation of more and more national citizens.
BY: Francisca Parente
