[VIDEO] PM hails new fund as one to 'drive Rwanda into middle income status'

Prime Minister Anastase Murekezi has said a new citizen-oriented fund, dubbed ‘Iterambere Fund,’ will be a big boost to Rwanda’s push to achieve middle income status by the year 2020. The Iterambere Fund, which will be run by the Rwanda National Investment Trust Ltd (RNIT), is intended to foster savings culture and mobilise resources domestically to spur economic growth. Speaking at the launch in Kigali, yesterday, Premier Murekezi said the Fund is in line with the country’s Vision 2020 goals under which the Government projects income per capita to reach $1,240 against economic growth of 11.5 per cent. A March 2016 report by the National Institute of Statistics of Rwanda showed that GDP per capita was $720, from $221 in 2003. “I encourage all people and entities, both government and private sector to take advantage of this opportunity to promote a savings culture not only for economic development but also for a promising future for all,” Murekezi said. The FineScope Rwanda Survey 2016, conducted by Access to Finance Rwanda in partnership with various members of the steering committee, including the Ministry of Finance and the central bank, indicates that that 5.2 million Rwandans, equivalent to 89 per cent of adult Rwandans, have access to financial services. “This indicates that Rwanda is moving fast, but we have to move faster,” the premier said. Prime Minister Anastase Murekezi gives his opening remarks. / Timothy Kisambira. He said empowering Rwandans financially indisputably makes them and the country develop faster. To achieve desired economic growth, he noted that in January 2008, the Government set up the Capital Market Authority (CMA) before launching Rwanda Stock Exchange in 2011. “Time has come that the Government launches RNIT Iterambere Fund,” Murekezi said, adding that the Fund will particularly help Rwandans with little means who have been afraid to embrace the capital market because of low income as the minimum investment in the Fund will be Rwf2,000. For one to have dividends monthly, they should have a minimum investment of Rwf100,000. Murekezi cited countries such as Luxemburg, Switzerland and Singapore that he said have reached appreciable GDP and GDP per capita thanks to many savings and investment funds. He said Luxemburg, a country with only 2,500 square kilometres of land surface, has about 3,900 investment funds that had Euro3,000 billion as of 2015. Finance minister Claver Gatete delivers his keynote. / Timothy Kisambira. “If people make collective investments, it creates means to get money to invest in projects that benefit the people. If we learn from these good examples, we can rapidly achieve the savings target of 20 per cent of GDP by 2020,” he said. In 2009, the Government adopted a national savings strategy under which savings culture is promoted from the individual and to the national level. “The goal is to achieve gross national investment target of 30 per cent of GDP by the end of second Economic Development and Poverty Reduction Strategy (2017/18),” the Minister for Finance and Economic Planning, Claver Gatete, said. He said 89 per cent of adult population has access to financial services, which surpasses the target of 80 per cent by 2017, with 2020 target at 90 per cent. To achieve desired investment targets, the financial sector requires a variety of products and instruments like unit trusts. People who have invested in the Fund will be able to sell their units six months after the Initial Public Offering (IPO) or primary market, a two month period which started on July 12, 2016, according to André Gashugi, RNIT chief executive. However, Gashugi said a unit priced at Rwf100 in this period will be bought at the value it will have made after that period. For asset allocation, Gashugi said, 70 per cent to 100 per cent will be invested in debts (including bonds and other fixed income products) and 30 per cent listed equities (including stocks). During the initial sale period, the units can be acquired through RNIT office or branch of collecting agents. Currently, the banks include Bank of Kigali, Banque Populaire du Rwanda, Crane Bank, Ecobank, GT Bank and Umwalimu SACCO. Stockbrokers include African Alliance, Baraka Capital, CDH Capital, Core Securities, MBEA brokerage and SBG Securities. editorial@newtimes.co.rw ****** WHAT THEY SAID Mwanayidi. Marie-Claire Mwanayidi, a returnee from Norway. ‘I appreciate an opportunity to put our investments together, which enables even people with little money to get benefits of financial products such as government bonds or capital market. I trust this Fund and I’m optimistic in terms of returns. This is a reliable way investment because it is not easy to explore possible investments. Once I get such a Fund managed by professional experts, it has saved me the hassle.’ *** Mporayonzi. Ezechiel Mporayonzi, manager of Mageragere Icyerekezo, Umurenge SACCO. ‘ It was long over due. I appreciate the unit is less expensive than the already existing cost of opening an account or being a member of financial institutions because it is Rwf10,000 or Rwf20,000.’ *** Karamaga. Faustin Karamaga, pensioner from Muhima Sector, Nyarugenge District. ‘This Fund presents golden opportunities mainly for the youth. Both people with high and those with low means are financially included. The youth should embrace the savings and investment opportunities offered by this Fund so that they have a better future guaranteed by savings. Again, the flexibility of this Fund whereby a unit holder can gradually make more investments or can get their investments whenever they need them with returns is gratifying. *** Nsengiyumva. Prosper Nsengiyumva, Executive Secretary of Duhahirane building cooperative, in Gasabo District. ‘Many people have been lagging behind in terms of savings and development-oriented investment. The capital market, for instance, benefits only people with high financial means and excludes those with limited earnings. Such a Fund is something valuable because it will make every Rwandan proud and achieve dignity and develop, especially people with low income, through systematic collective investments.’ *** Mukandasira. Caritas Mukandasira, Western Province governor. ‘Once people understand the operations of this Fund, it will benefit them. In fact, there have been other funds, but people could not afford to invest in them. It is easy for every citizen to get Rwf2,000 for a unit in this Fund. I hope this Fund will offer more benefits than even banks. What we are going to do as leaders is to help improve people’s awareness and encourage them to invest in it with no fear.

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[VIDEO] PM hails new fund as one to 'drive Rwanda into middle income status'