The limited role of small stock exchanges in economic development: A case study of Mozambique and Swaziland

Figures & data

Table 1: Trading statistics on selected African stock exchanges, 2005

Market	Established	Market capitalisation (current US$ million)	Market capitalisation as percentage of GDP	Stocks traded, turnover ratio (%)
South Africa	1887	566 972.33	232.70	42.12
Nigeria	1960	15 134.36	24.69	10.69
Botswana	1989	13 399.60	148.86	1.80
Kenya	1954	5860.04	32.00	7.90
Côte d'Ivoire (BVRM^a)	1973/1998	2787.58	79.97	1.33
Mauritius	1988	2645.90	40.23	5.68
Zambia	1994	2456.00	26.55	0.63
Ghana	1990	1660.58	15.49	4.12
Uganda (2006)	1998	742.00	32.73	0.02
Tanzania	1998	587.86	4.67	4.08
Namibia	1992	414.94	6.67	128.29
Swaziland	1990	197.09	7.50	0.0026
Malawi	1996	101.93	5.36	1.98
Mozambique	2001	28.77	0.45	0.08
Notes: Market capitalisation data were unavailable for 2005 for Uganda, so 2006 data were used instead. Two dates for the Côte d'Ivoire exchange indicate transition in October 1998 from former national stock exchange in Abidjan to new Francophone West African regional exchange. ^aBourse Régionale des Valeurs Mobilières.
Source: Compiled by authors from national stock exchange websites and the International Finance Corporation statistics database.

Table 2: Funds raised from IPOs in selected African stock markets (US$ million)

	1998	1999	2000	2001	2002	2003	2004	2005	2006
UK (London)	7267.08	8732.04	19 147.71	9588.65	8650.74	6225.32	11 839.11	10 278.49	16 484.62
South Africa	608.38	96.06	229.12	591.96	168.06	0.00	81.94	179.18	3335.56
Nigeria	–	–	–	0.00	0.00	516.44	2022.93	11.83	903.16
Kenya	0.00	5.78	4.89	18.65	0.00	0.00	0.00	0.00	189.45
Mauritius	0.00	0.00	45.59	17.43	21.67	11.74	28.63	151.52	0.97
Côte d'Ivoire	391.31	104.77	36.20	0.00	0.00	5.78	0.00	0.00	0.00
Swaziland	10.91	3.90	0.00	0.00	0.00	0.00	14.79	0.00	0.00
Mozambique	–	–	0.00	58.14	0.00	0.00	0.00	0.00	0.00
Source: National stock exchange websites and direct sources from stock exchanges. Bloomberg (2008) for South Africa.

Table 3: Swazi stock market: new issues, 1990–2006

Date	Issuer	Instrument	Type	Market capitalisation (million SZL)
1990	Nedbank (Swaziland) Ltd	Equity	Flotation	42.22
	SEB Stock	SEB STOCK 05/07/2000 14.75%	Bond	15
1991	Swazispa Holdings Ltd	Equity	Flotation	31.48
1992	Royal Swazi Sugar Corporation Ltd	Equity	Flotation	255.32
1993	Swaziland Brewers Ltd	SWD BREWERS LTD 14.50% DEB 2002	Debenture	15.30
1994	Lonrho Sugar Corporation Ltd	Equity	Flotation	699.25
	Swaziland Posts and Telecommunications	SWD POSTS & TELCOMS 13.25% 2003	Debenture	16.64
	Swaziland Sugar Assets	SWD SUGAR ASSETS 13.50% DEB 2003	Debenture	12.82
1995	–	–	–	–
1996	Masterfridge Ltd	Equity	Flotation	207.41
	Swaziland Government Debt	SWD GOVT 15/11/2005 15.00%	Bond	30
1997	Lonrho Sugar Corporation Ltd	Equity	Rights	23.91
1998	Swaziland Property Investments Ltd	Equity	Flotation	63.94
	Nedbank (Swaziland) Ltd	Equity	Rights	8.26
1999	Newera Partners Ltd	Equity	Flotation	24
2000	–	–	–	–
2001	Royal Swazi Sugar Corporation Ltd	Equity	Rights	578.08
2002	–	–	–	–
2003	Standard Bank	STD BANK 15/09/2015 9.73%	Debenture	^a
	Swaziland Posts and Telecommunications	SWD POSTS & TELCOMS 15/10/2010 13.75%	Debenture	^a
2004	Swaziland Empowerment Ltd	Equity	Flotation	83.25
2005	–	–	–	–
2006	–	–	–	–
^aTotal capitalisation for both debentures of 174 million SZL (Swazi lilangeni).
Source: Compiled by authors from the Capital Markets Development Unit, Central Bank of Swaziland.

Table 4: Swazi Stock Exchange listed companies: by owner, 2006

Company	Market capitalisation (SZL million)	Sector	Beneficial owners	Free float (%)^a
Nedbank Swaziland Ltd	71.58	Financial services	Nedbank (RSA)/Swazi Gvmt (Swz)	9.70
Swazispa Holdings Ltd	50.71	Retail and leisure	All Saints (Swz)/Tibiyo Taka Ngwane (Swz)	9.70
Royal Swaziland Sugar Corporation	944.19	Agriculture	Tibiyo Taka Ngwane (Swz)/Pan African Sugar Ltd (Mauritius)/Nigeria Gvmt (Nigeria)	21.00
Swaziland Property Investment Ltd	61.61	Property	Fosfin (RSA)/SIDC/Public Service Pension Fund (Swz)	21.40
Newera Partners Ltd	27.55	Private equity	African Alliance/Swaziland Provident Fund (Swz)/Unit Trust of Swaziland (Swz)	12.20
Swaziland Empowerment Ltd	94.35	Private equity infrastructure fund	Public Sector Pension Fund (Swz)/Newera Partners Ltd (Swz)	10.92
Masterfridge Ltd	25.07^b	Manufacturing	Suspended: January 2001^c (subsequently delisted)	–
^aNumber of shares publicly available May 2006.
^bPrior to share suspension in January 2001.
^cEffective at end of 2003.
Source: Compiled by authors from the Capital Markets Development Unit, Central Bank of Swaziland and Bloomberg (2008).

Table 5: Shareholding of Cervejas de Moçambique through Bolsa de Valores de Maputo

Prelisting shareholders	Ownership (%)	Post-privatisation ownership structure (2001)	Ownership (%)	Ownership structure (2007)	Ownership (%)
South African Breweries (SAB)	70.00	South African Breweries (SAB)	70.00	SAB Miller	79.18
Government of Mozambique	30.00	Government of Mozambique	2.00	Government of Mozambique	1.78
		Employees	10.00	SPI	4.77
		Founding partners	5.00	Mozambique Investment Ltd	1.32
		Small subscribers	6.50	Employees	8.92
		Other	6.50	Other	4.03
		Public release (free float)	6.50	Public release (free float)	4.00
Source: Compiled by authors from Mozambique stock exchange, and Philip Duncan, Chief Financial Officer, South African Breweries/Cervejas de Moçambique, personal communication, 10 July 2008.

Table 6: Contrasting evolution of debt and equity markets in Mozambique

	Market capitalisation
	Debt		Equity	Debt/equity ratio
Year	Metical (million)	US$ (million)	US$ (million)
1999	5.82	4.50	–	–
2000	280.24	16.37	–	–
2001	2651.80	113.50	58.14	1.95
2002	2814.15	117.40	52.84	2.22
2003	2532.50	105.80	41.06	2.58
2004	2830.83	148.20	53.68	2.76
2005	5746.39	242.00	28.77	8.41
2006	7532.60	298.20	96.15	3.10
Source: Bruno Tembe, Operations Director, Bolsa de Valores de Maputo, Mozambique, personal communication, 8 July 2008.

Table 7: Comparative stock market performance indicators, 1990–2006

Year	Number of firms listed	Market cap (US$ million)	Traded value (US$ million)
South Africa
Mean (1990–95)	671.67	209 870.48	11 613.33
Mean (1996–2000)	536.67	185 226.27	45 722.11
2001	542	146 017.70	49 984.41
2002	472	146 017.70	93 595.14
2003	426	269 156.60	147 625.30
2004	404	455 843.70	230 934.60
2005	388	566 972.30	238 808.20
2006	401	794 875.80	390 123.10
Namibia
Mean (1990–95)	11.75	109.76	19.93
Mean (1996–2000)	36.8	515.92	232.54
2001	37	150.51	167.41
2002	35	170.77	159.75
2003	35	307.76	306.74
2004	32	442.33	505.78
2005	28	414.94	532.34
2006	28	541.72	527.96
Mozambique
Mean (1990–95)	–	–	–
Mean (1996–2000)	–	–	–
2001	1	56.89	0.52
2002	1	51.76	38.01
2003	1	39.95	84.86
2004	1	51.85	23.27
2005	1	27.44	0.00
2006	1	95.50	0.03
Swaziland
Mean (1990–95)	3	187.46	0.53
Mean (1996–2000)	4.33	142.29	60.00
2001	6	128.42	3.13
2002	6	139.98	0.06
2003	6	174.07	0.02
2004	6	221.59	0.01
2005	6	197.09	0.01
2006	–	–	–
Source: Compiled by authors from national stock exchanges, the Capital Markets Development Unit, Central Bank of Swaziland, International Monetary Fund and World Bank International Finance Corporation statistics databases.

Table 8: Sources of business and project finance in Swaziland (lilangeni millions, SZL), 2000–04

	SSX	Commercial bank lending to business	Foreign direct investment				Net balance of inward portfolio investment
		All maturities	Unlisted equity	Long-term capital	Short-term capital	Reimbursed profits	Equity	Debt
2000	24	996.16	510.20	693.40	891.00	1962.60	–0.60	–13.40
2001		956.32	837.40	850.10	653.50	1960.80	–1.00	–45.40
2002		1306.33	737.90	582.90	1215.60	2711.40	0.00	41.00
2003		1566.29	709.40	703.10	857.50	2517.20	0.00	–2.20
2004	83.3	2015.81	678.70	828.10	963.30	2753.60	4.40	–70.50
Note: SSX denotes Swazi Stock Exchange new flotation from listed companies.
Source: Compiled by authors from Central Bank of Swaziland Annual Report, 2005, and the Capital Markets Development Unit.

Table 9: Domestic savings and life expectancy in Swaziland, South Africa and Mozambique, 1992–2005

Country	1992	1990–94	1996–99	2000	2001	2002	2003	2004	2005
Panel 1: Domestic savings rate as proportion of GDP (%)
South Africa	–	20.31	18.21	18.51	18.55	19.62	18.57	–	–
Mozambique	–	−6.81	3.77	10.56	18.30	15.57	11.28	–	–
Swaziland	–	5.53	3.19	3.15	5.67	9.00	9.20	–	–
Panel 2: Life expectancy (years)
South Africa	62	58	55	49	46	47	45	45	46
Mozambique	–	44	–	43	–	42	–	–	42
Swaziland	58	–	–	60	60	51	34	34	31
Source: Compiled by authors from the World Bank Development Indicators Database (2005) and the UNCTAD (2006) Handbook of Statistics.

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