The long awaited Rwanda Stock Exchange (RSE) has been launched, as the operations of the Rwanda-Over-The-Counter (OTC) market are phased out, allowing investors to raise capital and to facilitate mobilization of savings.
The RSE comes three years after a March 2007 decree, by the Prime Minister, that established the Capital Markets Advisory Council (CMAC) to help set up and regulate the transitional process, into a fully fledged stock exchange.
The official launch of the RSE and the landmark listing of the first domestic company on the RSE is a significant milestone in our capital market development.
However, to realize its full potential, the country must have a world class stock market that is strong, sustainable and well-functioning. A stock market plays a central role in the economic development of a nation, the well being of the people and serves as the benchmark for the region and the continent.
The RSE must serve as a catalyst for the transformation of the economy, by becoming the first port of call for domestic savings and for international investors. It must help finance our nation’s ambitious development agenda, specifically reducing and eventually ending our reliance on foreign aid.
However, there is need to improve financial literacy, through increased public education, to facilitate the capital markets development. The RSE needs the support of all stakeholders, including the media, as we strive to promote and develop our stock market.
Ultimately, if we work together, we can increase the scope and ensure our individual and collective successes.