University students who are competing others in 8th edition of the Capital Market University Challenge going on are set to get multiple benefits in terms of saving and investment.
Organized by Capital Market Authority, the contest creates opportunities which young people should tap into in order to become future investors in capital market at such early stage.
" The initiative instills in young people the culture of saving and paves the way for investment through the capital market,” said Magnifique Migisha, the Capital Market Authority’s Public Relations Officer.
A capital market is a market for securities which could be debt or equity, where business enterprises and government can raise long-term funds.
Securities traded in the capital market are usually long-dated financial instruments such as treasury bonds, municipal bonds, shares or stocks issued by companies.
"The culture of investing through capital market among young people is being instilled the Capital Market University Challenge.This prepares young people as future investors and professionals of the capital market industry,” Migisha said.
The competition that raises awareness about capital market among young people involved both a set of quizzes and a topic for essay writing.
Round 1 quiz category took place May 25.
Round 2 for the competition for the Quiz category took place on May 28 while 3rd round quiz took place Tuesday June 1 followed by essay on June 6.
The contest has gone full digital as all registered students are competing through the digital platform accessible through http://investor.cma.rw
Three winners have to be awarded at provincial level and three winners at National level on June 17.
He said that students who will compete others will get cash prizes that will enable them to save and invest in capital market.
" Awards will be availed to the winners of both the quiz category and essay category in form of securities i.e shares and bonds listed at the Rwanda Stock Exchange as a way to initiate students on the culture of saving and investing through the capital market in a more practical and lively manner,” he said.
University students who were awarded in the previous Capital Market University Challenge have managed to create jobs and continued to save through the capital market.
A group of six students who took part in the Capital Market University Challenge while still at university in 2017 in University of Rwanda-Huye campus have now formed a company thanks to the Rwf1.1 million prize that helped them to save through capital market in Bank of Kigali and I&M Bank listed on Rwanda Stock Exchange (RSE).
Dubbed "Reliable Immense Company Ltd”, the company provides practical professional training on computer programmes and software for capacity building.
" Other young people should learn from previous winners the importance and benefits of saving and investing through the capital market,” Migisha noted.
The University Challenge promotes creation of savings clubs/groups among students in universities and higher learning institutions (HLIs) while providing capacity building trainings to established saving clubs on how best to run their clubs and how to save and invest through the local capital market.