Capital markets: Kigali is ready to list firms

Rwanda’s Capital Market trading is expected to start when investor(s) offer shares for sale, probably early next year.The stock exchange in Rwanda was suggested way back in 2004—but according to financial experts it has ‘taking long’. By press time, government and the private companies had not issued the long term securities—debt and equity securities to be traded. However it is hoped that Rwanda having joining the East African Community, the country could enjoy benefits of free movement of capital through cross border listing.According to Robert Mathu, the executive director Capital Markets Advisory Council (CMAC), his organisation is charged with the responsibility of guiding the establishment and development of the capital market in the country.CMAC staff reasons that they delayed to start business partly because setting rules and regulations that govern the capital markets, like trading, membership, disclosure or listing rules needed time.According to Pierre Celestin Rwabukumba, operations manager, CMAC, their first priority is to create public awareness through workshops and preparation of the brochures.“We are going to start with government officials like parliamentarians, district leaders and later the industrialists, entrepreneurs and bankers,” Rwabukumba said.Other benefits.“It will encourage ordinary people to save, government and companies will raise long term funds from this market,” he said.Capital market acts as an alternative to investment, helps in the free movement of capital through cross listing and that it acts as an exit door.In case one needs money they can sale their security to another investor who is in need of it. Ends