Capital Market Advisory Council of Rwanda (CMAC) last week trained the students of the School of Finance and Banking (SFB) on the importance of investing on the markets. CMAC is primarily responsible for regulating the capital markets which are a component of the financial sector and securities traded in the capital markets. Securities are usually long dated financial instruments like treasury bonds, municipal bonds and debentures. The training is the second CMAC has offered to SFB students on the role of the capital markets and plans to go around other universities sensitising students to know the role of the markets and how they function. “This is a business school training students in business courses like finance and accounting and CMAC being a financial sector, we feel it is our obligation to work with them,” said Olivier Kamanzi the Deputy Executive Director of CMAC. Kamanzi also urged students and staff to investing in markets since this does not require huge sums of money. “Students too should think about buying shares in companies which have listed since it does not require a lot of money and the best time to invest is now as there is no better time,” added kamanzi. He said there are at least four local companies that will list on the Rwandan bourse this year though he did not disclose them and other regional companies that are set to cross list this year as well. CMAC seeks to teach the general public about the benefits of investing through the capital markets which include savings which are accumulated through investing in securities that are listed in the capital or stock markets. Investment in the stock markets also provides a source of income. Shares pay dividends when companies declare profits and decide to distribute part of the profit to shareholders. About the current global financial crisis which has had a significant effect on markets in the developed world, Kamanzi said they are not yet affected. “We are watching the current trends in global markets closely though we have had no significant impact yet.” said Kamanzi. Ends
