Rwanda Capital Market Development Advisory Council, a committee instituted to fast track the establishment of capital market in the country says trading starts December. Besides, capital market will officially be launched September .
When it becomes operational, this will be the fourth capital market in East Africa after ones in Kenya, Tanzania and Uganda.
Capital market is where government and companies can raise long term funds.It comprises of both equity and debt securities. Equity securities comprise of shares which indicate claim of ownership in the company.
While debt securities consist of both corporate and government bonds.
The chairman advisory council capital markets development Henry Gaperi said the council is working hard to see that the capital market in Rwanda is set up, and runs smoothly.
“We have reviewed the legal frame work and examined what kind of legislation needs to be in place, so that if the capital market begins, it runs smoothly’’. Gaperi explained.
By the end of November, listing, membership and trading rules will be published.
The development of capital markets in Rwanda is also carried out in collaboration with various stakeholders.
“The 11 man council that was appointed comprises of representatives,” Gaperi said.The are from the Private Sector Federation, Central Bank, Insurance sector, Ministry of finance, Pension Fund, business community (manufacturers), one independent individual and a legal expert.
The chairman called upon the public to stop thinking that the concept of capital markets is a complicated issue.
Gaperi asked Rwandans to be aggressive and invest and saving through the financial securities, once trading starts.
What Rwanda has place currently is a money market where trading of short term securities like treasury bills is carried out by the Central Bank.
Financial experts say the country needs the capital market for the companies and government to raise long term financing, for potential savers and investors to appropriately relocate capital. Ends