Parliament passed the Capital Market Law, effectively paving way for the establishment of the Capital Markets Authority (CMA), an independent agency to regulate the operations of capital markets in the country.

CMA is set to replace the Capital Markets Advisory Council (CMAC), which was established by the Prime Minister’s decree of 2007 to oversee the development of capital markets in the country.

The new law also seeks to regulate the Rwanda Stock Exchange, which will be charged with trading operations in securities.

Robert Mathu, the Executive Director of CMAC, is optimistic that the law would not have come any sooner, considering the increased activities on the RSE.
 
"There was no legal framework governing the capital markets in Rwanda. CMAC was created by a prime ministerial order and governed by the Companies Act which governs all companies and is not specific to the capital market,” Mathu said on Monday.

"Now that we have the capital market law, CMA will have the power to make and approve rules and regulations for the capital market as well as issue licenses and register capital market businesses and instruments.”

He added that efforts are ongoing to raise foundational structures that will aid the body to become fully functional.

Once all structures are in place, CMA will also be mandated with promoting public awareness of the capital markets, supervise over the code of conduct and acceptable practices in the market.

Bank of Kigali and giant telecom company, MTN Rwanda are the latest companies expected to float shares on Rwanda’s stock market, joining Bralirwa.

The RSE also cross lists Kenyan-based firms, Kenya Commercial Bank and Nation Media Group. The exchange also lists one corporate bond by BCR and treasury bonds.

CMA will also be expected to collaborate with other regulatory bodies prior to modifying regulations that may have great impact on the functioning of the entire capital market.

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