The Rwanda’s Capital Market Authority (CMA) nurtures the wealth by facilitating the development of an orderly, fair, transparent and efficient capital market. Also CMA guides the development of a capital market industry in Rwanda.
The government of Rwanda has continued to support an enabling environment for the development of the capital market through opportunities presented by development plans. Capital market is one of the emerging opportunities for economic transformation in the second Economic Development and Poverty Reduction Strategy.
The Executive Director of CMA, Robert Mathu on deepening the market and attract more listings stressed that “Presently we are doing a lot of public awareness to attract both would-be investors; those seeking to raise money through our markets and corporate investors that may be listed elsewhere and would like to come to our market.”
He added that “We are also looking at targeting the SME market. We have developed guidelines that are aimed at attracting the SMEs that may not be able to meet the full listing requirements through listing on the main stock exchange. So we have created a window that will accommodate small companies.”
The CMA vision is to be a key contributor to Rwanda becoming a competitive financial center through mobilization of long term capital.
The development of a vibrant capital market remains a fundamental component of the country’s socioeconomic development goals. The key role of the capital market is to contribute in providing long-term resources for productive investment to accelerate growth and alleviate poverty.
When its full potential is realized, the capital market will be a source of funding for infrastructure development such as roads, water and sewer systems, housing, energy, telecommunications and public transport thus creating a great socio-economic benefit and assisting the government in its efforts to close the resource gap in financing essential socio-economic development projects.
The capital market will also serve as an important gateway to Rwanda by encouraging global investors and foreign direct investments (FDI). Further, the capital market provides avenues for investment opportunities thereby encouraging a thrift culture and increasing domestic savings and investment ratios essential for supporting growth.
CMA encourages broader ownership of productive assets by small savers to enable them benefit from Rwanda’s economic growth and wealth distribution.