Yesterday, Rwanda unveiled the first-ever unit trust fund in a landmark development that should turn around the fortunes of the local stock market and support the country’s efforts to grow savings.

The Iterambere Fund also seeks to promote a savings culture and encourage ordinary Rwandans and businesses to mobilise investment funds through trusts.

The IPO issued by the Fund gives Rwandans yet another avenue to mobilise savings as well as development finance. This will be possible as one needs just Rwf2,000 to invest in the Fund that is managed by the Rwanda National Investment Trust (RNIT). This gives the majority of Rwandans an opportunity to invest and save through secure financial products.

Moreover, collective investment funds, like the Iterambere Fund, enable people to pool together money that can be borrowed by members at affordable rates or invested in high-yielding products for a good return.

That RNIT will also invest in firms listed on the local bourse should give investors assurance to participate in this and future unit trusts. By its mandate, RNIT is expected to promote and manage funds, including unit trusts.

The Capital Market Authority and the City of Kigali, last year, agreed to partner in Real Estate Investment Trusts (REITs) to help raise capital for development of affordable housing in the city. Though this initiative is yet to kick off, such avenues give the ordinary citizens platforms to invest and improve their financial standing as well as their livelihoods.

Also, the ripple effect of such initiatives on an economy like Rwanda cannot be overemphasized because mobilising development funds, locally, safeguards the country from shocks emanating from the global arena.

The Iterambere Fund IPO also strengthens Rwanda’s resolve to build a self-reliant economy that is able to fund its development needs. This is safer than relying on foreign funding that’s often pegged on unfavourable conditions or come with high interest charges.

As the Iterambere Fund IPO is open for two months before it’s listed on the bourse, Rwandans should be encouraged to buy stakes in the Fund to safeguard their financial future and support the country’s development.