The process of evolution of the Stock Exchange in Angola and, respectively, of the capital market, must be observed in two components: (i). Events that were decisive for the emergence of a functional stock exchange; (ii). Counternatural evolution of the stock exchange in Angola.
With regard to the events that were decisive for the emergence of a functional Stock Exchange, like the Portuguese-speaking counterparts that embraced the stock exchange project at the end of the 90s, the case of Angola was no different in terms of its path, that is The genesis of the Bolsa de Valores project in Angola dates back to 1997 and subsequently other events directly or indirectly culminated in the creation of the first functional Stock Exchange, in this case BODIVA in 2014.
As for the second point, considered as the unnatural evolution of the stock exchange, it is limited to the fact that in most realities the market comes first and then the regulatory framework and the case of Angola was the opposite.
Without prejudice to the fact that the market did not emerge in an orthodox way due to structural issues fundamentally related to the importance of the “First step” given the inertia of the spontaneous birth of the market itself, it was verified that the evolution of the Stock Exchange in Angola in the strict sense, that is Yes, from 2014 it was certainly accompanied by some interesting milestones to highlight:
- Market Segments: From 2014 – 2022, according to the reports published by BODIVA, around eight (8) market segments were launched, with particular emphasis on the Treasury Bond Exchange Market (“MBTT”), which made it possible to reach greater depth of the market through the multilateral nature of operations carried out on the stock exchange. Aligned with the MBTT, still on the stock market spectrum, another milestone that put BODIVA on the radar at the level of markets with listed companies, was the launch of the Stock Exchange Market (MBA) which in 2022 represented 1.56%.
- Enlargement of the Investor Base: One of the objective variables to determine the growth of the investor base is the number of existing custody accounts. Accordingly, as we can see below, 2022 ended with around 64,031 custody accounts (Individual securities registration accounts), representing a growth of 155.87% compared to the same period of the previous year and the factors that led to the respective broadening of the investor base are associated fundamentally: (i). Creation of custody accounts during the Public Offerings for Sale of BCGA and BAI and (ii). Creation of custody accounts resulting from investment fund subscriptions and (iii). The simplification of account opening processes used by some BODIVA Members.
3. Amount Traded: Certainly, in addition to the broadening of the investor base, in recent years it has been seen that the evolution of the capital market is intrinsically associated with an increase in the amount traded, that is, the greater the amount traded and, respectively, the basis of investors, the greater the level of evolution of the market itself. Thus, from 2016 to 2022, transactions at BODIVA represented an increase of 327.52%, with an annual average of Kz 898.42 billion, as identified below
In view of the process of evolution of the Angolan stock exchange specifically and extensively of the capital market in Angola, certainly the impact for investors appears to be positive and challenging, since today the investor, in addition to being integrated into a system centralized securities store, manages to monitor all your investment in securities quickly and conveniently through the investor portfolio launched by BODIVA.
In this way, as a result of this evolution, today the investor has a range of alternative financial instruments to the traditional ones offered by Banking and, above all, it is increasingly considered that the evolution of the market has resulted in a greater penetration of financial education actions, making the phrase “Penso Logo Invisto!” makes more and more sense to investors.
The opinion of... Abel Quijila