Experts discuss East Africa’s investment potential
Monday, April 08, 2024
Minister of Finance Uzziel Ndagijimana delivers remarks during the conference at the Kigali Marriott Hotel on March 28

Amidst the evolving economic dynamics of East Africa, experts have gathered to dissect the region’s investment landscape and uncover its latent potential.

Through the 5th Annual CFA Investment Conference, which aimed to catalyse actionable insights and foster meaningful connections to propel East Africa’s investment landscape towards a path of sustainable growth and prosperity, the experts shed light on various opportunities awaiting investors in the burgeoning corner of Africa.

The conference took place at the Kigali Marriott Hotel on March 28. It was organised by the Kigali International Financial Centre (KIFC) in collaboration with CFA Society East Africa.

Nick Barigye, the CEO of Rwanda Finance, emphasised the Kigali International Finance Centre’s role in promoting investment and financial market development in East Africa.

Nick Barigye, the CEO of Rwanda Finance, emphasised the Kigali International Finance Centre’s role in promoting investment and financial market

He highlighted the transformative era of globalisation, technological advancement, and socio-economic evolution, stressing the importance of international financial centres as drivers of growth and innovation.

Barigye further underscored KIFC’s commitment to excellence, integrity, and inclusivity in financial services, positioning it as a hub for investment in Africa.

The conference took place at the Kigali Marriott Hotel on March 28

"Our mission transcends mere facilitation; it embodies a commitment to excellence, integrity, and inclusivity in all facets of financial services. Today, as we convene to deliberate on the future of investment, let us not lose sight of the broader context within which our endeavours unfold.”

He added: "Throughout this conference, I invite you to engage in thought-provoking discourse, to challenge conventional wisdom, and to forge alliances that transcend borders and ideologies. May this conference serve as a beacon of inspiration for all those who dare to dream, innovate, and invest in a brighter tomorrow.”

Barigye urged participants to consider the broader impact of their actions beyond financial metrics, emphasising empowerment and progress.

He also encouraged engaging in thought-provoking discourse, challenging conventional wisdom, and fostering cross-border alliances for a prosperous and inclusive future.

Donald Kaberuka, Chairman and Managing Partner at SouthBridge, highlighted the importance of translating investment into human development.

He said that attracting investment should ultimately serve the well-being of people, and urged investment in education, health, and infrastructure, particularly in Africa, to leverage its demographic dividend.

"Attracting investment into a country is a means to an end. The end is the well-being of the people. As you think about investment, think about things like capital formation, your digital, and your factories, but above all, think about investment in humanity. The big dilemma in the investment world is how to make these two link up.

Donald Kaberuka, Chairman and Managing Partner at SouthBridge, speaks on a pannel discussion

"Those who need the return where there is a global savings, and those who have negative savings, but they can provide a return. We don’t have a vehicle for derisking between those two.

"But there are many other things your generation has to do to make sure that the investment space is deeper, wider, and more diversified. Tariffs are no longer the issue. Non-tariff restrictions, you can handle them.”

Kaberuka also discussed the dilemma between the global north, where capital is concentrated, but opportunities are limited due to ageing populations, and the global south, which has favourable demographics but faces economic challenges.

He advocated for derisking investments between the regions and emphasised the need for international financial institutions to reform.

He also urged the younger generation to prioritise integration efforts beyond reducing tariffs to deepen and diversify the investment space.

Uzziel Ndagijimana, the Minister of Finance and Economic Planning, emphasised the importance of the financial sector in driving economic growth, stressing the need for a conducive environment for capital flow and efficient resource allocation.

Ndagijimana outlined Rwanda’s investment opportunities across various sectors, aligning with Vision 2050 and emphasising the significance of regional and global partnerships.

He underscored the role of collaboration with international partners, multinational institutions, and the private sector in resource mobilisation, knowledge sharing, and market access.

Highlighting initiatives like the African Continental Free Trade Area (AfCFTA), Ndagijimana emphasised the importance of boosting trade and improving connectivity for economic progress.

"The Government of Rwanda is committed to fostering a conducive environment for investment and economic growth. We are ready to provide the necessary infrastructure, policy frameworks, and support mechanisms to facilitate investment initiatives central to the economic growth of the entire East African region.”

A huge opportunity exists in Kigali

Rwanda represents a dynamic market that has long been committed to building a skilled educated workforce and fostering a strong environment for investment, according to CFA Institute President, Margaret Franklin.

In a broadcast message, Franklin lauded the government of Rwanda saying that it has "taken steps to create greater educational and training programmes for individuals to equip them with skills in investment and financial sector.”

"This effort will foster greater opportunities for professionals to skill, re-skill, and upskill throughout their careers to contribute to the burgeoning financial markets in Rwanda.”

She also announced that her institute is proud that its flagship CFA programme has been recognised in Rwanda and the region as well.

"With Rwanda’s Ministry of Finance and Economic Planning, we are working to offer scholarships to government employees and university students to pursue the CFA designation.

"In addition, we are thankful for the great support to the CFA programme from organisations in the country that recognise the value of the CFA designation such as the Rwanda Finance and Finnacco Hub.

"It is through their contributions and encouragement that we see many candidates in our programme.”

Franklin pledged to open more CFA programme test centres in the region, particularly in Rwanda, Tanzania, and Uganda. She also said there are now 20 cities in Africa with test centres, which represents an incredible amount of growth in recent years.

"We believe that a huge opportunity exists in Kigali, to continue to develop a financial industry hub in conjunction with all of you. We believe CFA Institute and CFA East Africa are well equipped to contribute to this effort.

"Continuing to provide high-quality learning opportunities to candidates and professionals in this country is one way we can help. In times of great change, the opportunity exists for us to challenge ourselves first to think intentionally about the path forward.”

The CFA Investment Conference featured insightful discussions on various topics, including benefits and strategies of gender-lens investing to drive financial and social change, and ESG investing.

Furthermore, discussions delved into the start-up ecosystem, highlighting the role of venture capital in driving innovation.

Francis Nasyomba, President of CFA Society East Africa observed: "Together we are laying the groundwork to position Rwanda and the region as a significant global financial hub, and I am proud to be witnessing history in the making. We are honoured to have more than 260 CFA charter holders in East Africa and as of today, we have more than 600 registered candidates in East Africa, of which more than 80 are from Rwanda.”

On the sidelines of the conference, different entities signed an MoU aimed at the promotion of the Chartered Financial Analyst (CFA) Qualification Program.

The MoU was signed between the Capital Market Authority (CMA) of Rwanda and Rwanda Finance Ltd, CFA Institute ("CFA”), CFA Society East Africa ("CFA SEA”), and The Finacco Hub Ltd.

The general areas of cooperation under this MoU include the enhancement of investment knowledge within the local and regional industry through public awareness campaigns, training sessions for local market participants and stakeholders, research, and mentorship programmes. They also include collaboration in hosting investment and finance education events, forums, and public awareness-related activities or symposiums at local and regional levels.

The MoU also stipulates that the CFA Institute will jointly work with all parties and the CFA Society East Africa to share available resources and opportunities to enrol universities and companies in the CFA programme at the discretion of CFA Institute. The institute will also collaborate with CFA Society East Africa to share available scholarships and funding opportunities for the CFA programme.