Businesses need to start accessing money markets

Rwanda yesterday launched its very first US$400 million Eurobond. The 10-year Bond offering is extremely significant. This bond issue proves that Rwanda has made so many huge strides that investors are confident that their monies will be paid back with interest on time. The money garnered will be used to refinance various projects, including the Kigali Conference Centre and RwandAir.

Friday, April 26, 2013

Rwanda yesterday launched its very first US$400 million Eurobond. The 10-year Bond offering is extremely significant. This bond issue proves that Rwanda has made so many huge strides that investors are confident that their monies will be paid back with interest on time. The money garnered will be used to refinance various projects, including the Kigali Conference Centre and RwandAir.This move on the Government’s part should be emulated by local businesses. Currently, the only local firms listed on the Kigali Stock Exchange are Bank of Kigali and Bralirwa. That is extremely unfortunate.The vast majority of local firms are too small to compete both regionally and internationally; the major reason being that they simply lack the financial clout to do so.  However, if they listed on our stock exchange they would enjoy an injection of cash that will allow them to invest in better equipment and other capital investments.   There needs to be a fundamental change in our mentalities on money markets. IPO’s (Initial Public Offerings) are a normal part of international business.There is no reason why our businesspeople need to be left behind. The old manners of doing business simply do not work in this globalised world. We need to adjust to the new reality or we shall simply get swamped.