Rwanda stock market makes progress in first year of operation

The Rwanda bourse, technically known as the Rwanda Over-the-Counter Market (ROCM) has raised a total of Rwf 15.2 billion on it primary debt market since it started operations. The capital market that is housed at the Ecobank Headoffice building in Kigali City, also raised some Rwf 643 million in bonds traded in 52 transaction at the secondary market according to information availed to parliament on Thursday last week.

The Rwanda bourse, technically known as the Rwanda Over-the-Counter Market (ROCM) has raised a total of Rwf 15.2 billion on it primary debt market since it started operations.

The capital market that is housed at the Ecobank Headoffice building in Kigali City, also raised some Rwf 643 million in bonds traded in 52 transaction at the secondary market according to information availed to parliament on Thursday last week.

According to officilas the debt market is the market for trading debt securities. Rwanda’s debt market thus involves corporate bonds and government bonds.

The market is yet to list a municipal bonds and negotiable certificates of deposit, and various money market investments.

However on the secondary debt market, debts can be sold on exchanges or on the over-the-counter market, but most are traded over the counter.

Despite having a Kenya Commercial Bank (KBC) crosslisting on the ROCM, the market is yet to list in equity.

The Executive Secretary of Financial Sector Development Programme, Francois Ngarambe told members of the lower chamber of parliament that Rwanda had learnt several lessons from the errors made by bigger economies and is striving to make her own stock market work.

“Rwanda has learnt quite a lot from mistakes made by bigger economies. Our economy is very small and I can assure you that all regulations and measures are being taken to make this stock market business a success here,” Ngarambe said adding that the government was aware but prepared for  the challenges ahead.

Ngarambe explained to the law makers that the stock markets are initially dealing in corporate shares and treasury bonds but will include other products such as shares as the market develops.

Three of the five East African Community (EAC) partner states including Kenya, Uganda and Tanzania already have stock markets. 

The Deputy Executive Officer of Capital Markets Advisory Council (CMAC), Olivier Kamanzi, who was present at the briefing, told parliamentarians that CMAC has managed to draft rules that governs and regulates the Rwandan stock market. The law will also regulate all stakeholders including investors and brokers.

Kamanzi also said there has been institutional and capacity building efforts involving different institutions to equip stockbrokers with the necessary tools for efficient stock market trading.

The Rwanda Over-the-Counter Market was established in February last year and kicked off with a Rwf5 billion corporate bond boost from Banque Commerciale du Rwanda (BCR) bringing to three the number of bonds listed at East African newest entrant to stock exchange circle.

Ends

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