IFC pledges support to CMAC

The Capital Market Advisory Council’s regulatory capacity will improve, thanks to an agreement between the Rwandan government and the International Finance Cooperation to develop an appropriate legal and regulatory environment for issuing and trading bonds. Under the agreement, signed Wednesday at the Hotel des Mille Collines in Kigali, IFC will help CMAC implement a training and certification program for securities market participants and establish a framework for integrating Rwanda’s capital markets with other markets in East Africa. “Partnering with IFC will enable us to tap into the World Bank Group’s institutional expertise. It will also help expand our investment opportunities in the Rwandan market, particularly nongovernmental bonds,” said Henry Gaperi, CMAC chairman. CMAC, a government agency launched in January this year to oversee the development of capital markets in the country, is still improving its capacity especially in the legal and regulatory department in order to create investor protection and a vibrant capital market. The World Bank and the Swedish international development agency have also pledged $5.5 million (Frw2.99 billion) to help establish a programme for developing securities markets in Sub-Saharan Africa. Rwanda capital market advisory council will also benefit from this three year programme. “Through this initiative we are working with governments to enhance institutional capacity in the region and to facilitate market transaction,” said Jean Philippe Prosper, IFC director for East and Southern Africa. “In East Africa, IFC and the programme partners are working with central banks, securities regulators, stock exchanges, and other stake holders to simplify regulations and procedures for issuing and trading bonds, establish an appropriate market structure, strengthen the secondary market, build capacity of market participants and facilitate regionalisation of the markets,” a statement from IFC reads. Ends

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IFC pledges support to CMAC