Mozambican State itself which listed its Treasury Bonds. The listed securities have maturity rates varying from 2.5 years to 10 years, with the exception of the Series II treasury bonds (TBonds) issued in 2005, which have no final maturity date limit. 219. The perception was that the legal framework was not sufficiently attractive to develop a capital market through greater participation by the business sector. However, the changes to in the capital market legal framework, with the creation of the Secondary Market (Decree N° 4/2009 and the relaxing of conditions for accessing the capital market – where a capital market accessible to small and medium enterprises is foreseen – created huge expectation for a new era with a more dynamic capital market. This did not happen, and the impression that was left was that other aspects unrelated to the legal framework may be affecting the development of the capital market, which continues to be far below expectation. For example, when it was established in 1999, the Mozambican Stock Exchange had identified approximately 17 enterprises that could possibly be listed on the stock exchange, but this did not happen. 220. Currently, the Mozambican Stock Exchange is classified as the smallest in Africa and one of the smallest in the world19 (Graph 1). 221. In terms of demands or recommendations on the application of the Corporate Governance Code for enterprises listed on the stock exchange, there has still been no noticeable involvement of the regulator in providing any type of recommendations, demands or initiative that may encourage these enterprises to implement them, although this is already a best international practice and is strongly recommended. Graph 1: Market capitalisation in some African countries: (July/2011) Source: World Bank – World Development Indicators (2010) 222. The market capitalisation of the BVM continues to be dominated by public debt securities (in terms of quantity) and by private debt, in terms of values (Table 5.1) Table 5.1: Transactions on the Official Listed Market 19 The market capitalisation of the Mozambican Stock Exchange was of 12.43 billion meticais on the 14th of July, with only two shares listed (Cervejas de Moçambique and Companhia Moçambicana de Hidrocarbonetos) and the remaining market capitalisation (approximately ¾) resulted from State securities (EIU 2011:11). 78