MTN, Bralirwa, Cimerwa reportedly showing interest

The Rwandan capital market is targeting, at least 2,000 active investors this year as a pertinent national public education and awareness campaign intensifies.

"Our target (in 2009) is at least having two thousand active investors. These are public and private companies, as well as individual investors,” Kamanzi,” said Olivier Kamanzi, the Deputy Executive Director of the Capital Market Advisory Council (CMAC).

As Kamanzi explained, the imminent (this Thursday) cross-listing by the Nairobi-based Kenya Commercial Bank (KCB) will be a crucial step in this ambitious target.

"First, it will depend on the cross listing of KCB. If we can list, this year, at least two public companies, then we can expect to have one or two in the private sector,” Kamanzi.

"Once KCB cross-lists, this will give us a barometer and from there we will get a clear view,” Kamanzi said. He also noted that people in the country are eager to learn about the new business.

Since January, CMAC has embarked on a country-wide public education and awareness campaign. Apart from possible individual investors, MTN, Bralirwa, Cimerwa, Sonarwa and BCR are some target companies likely to list.

"We (CMAC) have been working with them and I believe that two of them will list this year,” he added.

A CMAC first quarter (2009) report says that three local companies – MTN, Bralirwa and Cimerwa have expressed interest in issuing corporate bonds.

However, as indicated by the quarterly report, market performance since 2008 has remained mostly unchanged.

Primary market figures in 2008 show a total of Rwf 15.25 billion from four listed securities that include, three treasury bonds and one corporate bond issued by the Commercial Bank of Rwanda (BCR).

In the Secondary market, the OTC bond market transacted a total turnover of Rfw 634,300,000 in 50 deals.

Kamanzi also added that the population should  first be educated so as to build a sound and strong securities industry in Rwanda. 

"The bottom line is, of course, looking into the returns of investments and for investors.”

In the March report, CMAC officials admit that the first quarter of 2009 started under an unclear atmosphere in the overall financial sector – due to falling confidence in the global financial sector.

"Of course it affected us, there were many who were willing to list but shied away. This is a fact,” he admitted, "But, we were not affected like other well-established markets, because we are new,” Kamanzi said.

"If no one has invested already, how are you going to lose money?” he posed, further highlighting liquidity concerns as the only issue since people are not sending remittances from abroad.

Ends