The Nation Media Group (NMG) has announced its intention to cross list in Kigali on November 2, after getting cleared by the Capital Markets Advisory Council. Having already cross listed in Uganda, NMG will move to Tanzania after Rwanda.
Once it cross lists, Rwandans will commence trading (buying and selling) shares on the Rwanda-over-the Counter Market. Rwanda will become the second East African Community country for the company’s shares to be cross-listed.
But that is not all. The cross listing of NMG shares on the Rwanda bourse should be treated as a landmark in the financial landscape of our country. The capital market is still nascent and anything that can boost its activity and growth should be seriously encouraged simply because it is dormant with only one company, Kenya Commercial Bank, cross listed.
While preparations are in high gear to list the first IPO of BRALIRWA, NMG’s cross listing will be the second on the market which has only attracted government and commercial bonds.
Rwandans will have the ability to invest and save money in a financially sound company because their shares will become more accessible to global investors whose access would otherwise be restricted because of international investment barriers.
The biggest advantage to Rwandan investors is that they will be able to trade in multiple time zones and in multiple currencies with others in Uganda, Kenya and Tanzania. Because this gives all players and issuing companies more liquidity and a greater ability to raise capital, there is need to support the cross listing of NMG and any other interested companies on the Rwandan capital market.