MECTS Becomes First PPP to List on Mozambique Stock Exchange

Mozambique Electronic Cargo Tracking Service (MECTS) became on Wednesday (14) the first public-private partnership (PPP) admitted to listing on the Mozambique Stock Exchange (BVM), marking a landmark moment for the country’s capital markets and opening the door to citizen participation in the equity of major concession-based enterprises.

The ceremony in Maputo was presided over by President Daniel Chapo and brought together government ministers, banking executives, business leaders, investors, and other capital market participants. The event coincided with celebrations marking the BVM’s 28th anniversary.

The chairperson of the BVM’s board of directors, Pedro Cossa, described MECTS’s admission as a milestone for Mozambique’s financial market, particularly because it puts into practice a legal provision requiring citizen participation in the capital of companies operating under the PPP framework. “The admission of MECTS to listing constitutes a pioneering milestone, as the first public-private partnership admitted to trading on the Stock Exchange,” he said.

According to Cossa, Law No. 15/2011 of 10 August, which governs PPPs, large-scale projects, and business concessions, provides for Mozambican participation in the capital of such ventures, in a proportion that may range between 5% and 20%, as established by law.

Cossa argued that the application of these rules should not depend solely on the initiative of individual companies and requires coordinated action by the relevant institutions. “The rules approved by the State must be effectively applied, and their implementation cannot depend solely on the initiative or convenience of each entity,” he said. He added that Council of Ministers directives issued in February and July of this year gave fresh impetus to the process through greater coordination between the Ministry of Finance and the BVM.

For Cossa, the opening of major projects’ capital structures also represents an opportunity for Mozambicans to participate directly in the results of economic activity in the country. “Large projects must contribute to national development, not only through taxes, employment, and the procurement of goods and services, but also through opportunities to participate in capital and corporate earnings,” he said.

Speaking on behalf of MECTS, Rafa Magalha said the stock exchange listing transforms the company’s governance structure and its relationship with investors, bringing greater demands for transparency, oversight, and accountability. “We are not merely complying with a legal requirement. We are embracing a new chapter in the life of our company,” he declared. According to Magalha, the listing will allow citizens and investors to participate in the company’s capital and benefit from the wealth generated by its operations. “The listing on the Exchange creates a new relationship between MECTS and society, and this relationship will allow citizens and investors to participate in the company’s capital,” he explained.

Magalha highlighted the capital market as an alternative to traditional financing methods, enabling companies to mobilise resources for expansion and development projects. He called on other companies covered by PPP legislation to follow the same path and contribute to the strengthening of the national financial market. “We want to continue to innovate. We want to continue to create value. We want to continue to generate real impact in the lives of Mozambicans,” he concluded.

MECTS is a technology company that operates the Electronic Cargo Sealing and Transit Tracking System (SEERC), developed under a partnership with the Mozambique Tax Authority to strengthen the control, security, and monitoring of goods moving through the national territory.

The admission of MECTS sets a precedent for other companies subject to the PPP regime. However, no details were disclosed during the proceedings regarding the percentage of capital to be made available to investors, the share price, or the total size of the offering.

As part of the BVM anniversary programme, Pedro Cossa also announced that Mozambique will host the 19th Annual Conference of the African Securities Exchanges Association in November, which is expected to bring together capital market representatives from across the continent to exchange experiences and deepen institutional cooperation.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=552500