The move by the Capital Market Authority (CMA) to draft new regulations aimed at supporting the implementation of a law on capital markets, should focus more on investor protection.

The regulator is set to unveil a set of regulations that will guide licensing, complaints, capital market principles fees and discloser procedures for listed companies.

They also include regulation on corporate governance, enforcement and compliance guidelines, takeover code, cross-border introduction and regional bond issuance.

The Rwanda Stock Exchange (RSE), was launched early this year, three years after the Capital Market Advisory Council (CMAC) was established to oversee the growth and development of capital markets.

Under the new structure, CMA is responsible for regulating the market while RSE is the country’s principal stock exchange, where securities are traded.

The market has registered tremendous progress and played a vital role in diversifying avenues through which Rwandans can save money as well as help the government and some companies raise long-term financing.

Rwanda’s largest lender, Bank of Kigali (BK), and the country leading brewery, Bralirwa, raised investment capital through Initial Public Offers (IPO) while Rwanda Commercial Bank (BCR) issued a corporate bond to support its mortgage portfolio. The government has also issued various Treasury bonds to raise money to finance its ambitious infrastructure programme.

Yet, throughout all these transactions, which registered tremendous oversubscription from both institutional and local investors, it is investor money that is at stake.

That said, to create confidence within the investing public, CMA should develop a well organised and regulated securities market. 

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