Capital market players target SACCO funds
PLAYERS in capital markets business are pushing for the listing of Savings and Credit Cooperatives (SACCOs) on the Rwanda Stock Exchange (RSE) as a way of tapping “idle funds” and attracting more people to invest in capital markets.
Shehzad Noordally, the General Manager CDH Capital, which offers stock brokerage services, says that SACCOs hold a lot of money from the public and investing it in capital markets would benefit members.
“We are trying to provide with them investment opportunities in the capital market and help them understand that they can still invest their money through shares and bonds,” he said.
Noordally is optimistic that listing SACCOs will help strengthen their governance and administrative systems that have put back efforts to fully bring the poor into formal financial system.
“We will build their capacity in terms of governance and risk management before they are listed on the stock exchange which I believe will be another great achievement,” he added
The SACCOs now boast of over Rwf 10 billion in savings. Most of them are part of government’s initiative—Umurenge SACCO—aimed at including the poor into the formal financial sector and access to credit for all.
Charles Furaha, legal and corporate affairs manager at Capital Market Authority (CMA) says that the awareness that is targeting SACCOs is aimed at educating the public on the importance of investing in
“We have to sensitive them to understand the capital market before we list them, they must be fulfilling all criteria needed to be listed on stack exchange,” he said
Mary Claire, a member of Masaka based cooperative says that investing in capital market would help most members have long term investment alternatives, adding that; “the challenge is that people do not understand how these markets work, but it is easier to invest compared to other ways”.
Capital markets Authority is currently rolling out sensitization campaigns to woe more people to invest in shares and bonds.
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