Rwandans want direct access to the capital market saying stockbrokers charge high commission and sometimes cause financial losses to their clients. "If I want to buy shares from Sonarwa why can’t I go to Sonarwa and carry out the transaction directly or come on Rwanda OTC and purchase listed securities,” Viatole Gasasira from Gicumbi District in Northern Province recently asked. He was among participants during  a sensitisation workshop organised by Rwanda Capital Markets Advisory Council.

The capital markets regulation requires investors to buy and sell bonds or shares through members (stockbrokers) of Rwanda Over-The-Counter (OTC) market.

Investors however fear that some of them could be incompet and therefore cause losses.

Robert Marthu, the Chief Executive Officer of the CMAC acknowledges the fear of investors saying that once bitten twice shy, meaning that the Rwandan investors want to be safe given their experience with middlemen. He however hastened to say that investors have no to choice but to work with the stockbrokers.  

"It is a requirement worldwide. Even on the New York Stock Exchange. Our members are professionals who are regulated,” he said.

He added that, CMAC admits brokerage firms after they have paid Frw10 million. They should also have previous experience in the same business.

Marthu believes that since the concept of capital market is new to the Rwandan community, they (investors) will soon appreciate the role of stockbrokers.

Ends