CMA to launch varsity savings clubs

The Capital Market Authority (CMA) will set up savings and investment clubs to help students in higher learning Institutions to save and invest in domestic financial markets. The scheme is part of CMA’s ongoing University Challenge competition, which is aimed at increasing public awareness on regional and local financial markets, especially the Rwanda Stock Exchange (RSE). Through the programme, CMA intends to encourage university students to save and invest in capital markets for example by buying units of Collective Investment Schemes, where a group of investors pool resources together and have them professionally by an independent manager with a view to make profit. Although collective investment schemes are yet to be introduced on RSE, there are relevant laws governing the scheme. “University students are the future leaders and investors of the country and this programme will encourage them into forming savings clubs and invest in the future,” CMA Executive Director, Robert Mathu explained, adding that the initiative follows a successful countrywide education campaign about capital markets. “The scheme is a continuous thing, but the first part is a one off. We meant to launch it earlier than this but we were short of resources,” Mathu noted Mathu also noted that the programmes have paid off with high appetite registered amongst Rwandans in both the Bralirwa and BK Initial Public Offers (IPOs). “We have two competitive components which include ‘Essay Writing’ and the CMA TV quiz,” he said. While students have already submitted their essays, the TV quiz will starts on January 23. The essay writing contest was selected on topic related to the capital markets in Rwanda while the quiz will test students’ knowledge about CMA. As part of the competitive process, participating institutions will be required to set up investment clubs, guided by a professional broker of their choice. While many students have been encouraged to compete in essay writing, participating universities are the ones to select three of their best students to compete in the TV Quiz. Winners will be awarded at a special gala night event. Awards include trophies, share certificates, internship with various industry players like CMA, RSE, commercial banks, among others. Mathu also disclosed that mid-February, they will announce the winner of the competition and they will give awards which will include cash that is equivalent to stock market shares. He further explained that CMA expects these students to start investing at the RSE at the end of the day and they will have the appetite to learn from other markets in the region and beyond. The competition is conducted by ‘MPRESS Africa Communications, a local public relations firm on behalf of CMA. The scheme is sponsored by CMA, Rwanda Stock Exchange (RSE), Central Bank (BNR), Rwanda Development Board (RDB), Commercial Bank of Rwanda (BCR), Rwanda Development Bank (BRD) among others. saul.butera@newtimes.co.rw