Rwanda should institute structural reforms, based on best international practices, to strengthen the country’s financial industry and make it more attractive to investors, experts have advised. According to Peggy Soobiah, a senior manager at International Financial Services (IFS) in Mauritius, the country also needs strong regulatory and legal frameworks to attract investors into the local financial sector. Soobiah was addressing financial experts and investors during the just-ended service investment forum in Kigali. “You have to think about how you can make it easier for global financial institutions to invest in the sector. It’s also imperative to revamp internal structures and develop a pool of skilled manpower that will serve investors in the financial sector. “It is also important to focus where you have a comparative advantage before signing any trade treaties with your neighbours,” Soobiah counselled. Lawson Naibo, the Bank of Kigali chief operations officer, noted that though there are still a lot of opportunities in the financial sector, “we must innovate and maximise our potential if we are to compete favourably in the regional market”. “We need to have the right human capital in place so global businesses can easily access skilled personnel locally,” Naibo added. Neeraj Ramyead, a business development executive at International Financial Services, said the financial sector needs protection and a supportive law regime. “This will create confidence among investors, especially when the global investment mood is no longer geared towards a zero tax industry,” Ramyead said. He argued that these elements give an added incentive to investors interested in injecting their money into the country’s financial industry. Dr Kadri Alfa, the East Africa Exchange boss, said the financial sector needs to focus more on creating products that will be easily transferred and embraced by the regional market. “You want to see a financial market that is dynamic in its products, targeting all segments of market. It is also important that the industry addresses prevailing risks that are discouraging investors,” he said. He added that investors should be given the right market information “so they assess the value of what they are going to invest in”. Robert Mathu, the chief executive officer of the Capital Markets Authority, called for a uniform incentives package, and linking of regional capital markets, saying these are critical for creation of a strong financial sector. Government targets to increase revenues from services exports from the current $400 million to more than $2.5 billion per by 2018.
