Rwanda Stock Exchange (RSE) is set to open for trading on January 31, 2011, as part of the country’s economic reforms that will help businesses to raise long-term financing.
The launch will also mark the listing of the first equities stock from a local company as Bralirwa shares will make their debut trading on the RSE.
“This is a very significant milestone because it has been managed by the council (CMAC) that was running the market at the same time do the regulatory part of it,” Robert Mathu Executive Director of the Capital Market Advisory Council (CMAC), the institution tasked to oversea the development of the capital markets in the country.
Currently, Rwanda operates an Over-The-Counter (OTC) market and the launch of the RSE as the country’s principal stock exchange, according to Mathu will boost the economy, especially the private sector by increasing access to finances.
“We saw it coming but it was a matter of time, we are riding on the right track with the success of the Rwandan economy,” he said.
Mathue said that currently seven credible regional and local brokers are registered and more are likely to come into the market as RSE gains momentum with more listings from local and regional companies.
He said that the recent oversubscription of Bralirwa Initial Public Offer (IPO) reflects investor confidence in the local stocks and the Rwandan economy.
The Bralirwa IPO was oversubscribed by 174 percent generating, $80 million against $29.5 million projected for the 25 percent of the government shares that were offered.
“This is one way the capital market is intended to be used as an avenue through which private sector in Rwanda can be able to access long term saving from out side the economy. Demand for investments in Rwanda is much higher than the supply for savings survival,” he added.