More companies, both local and foreign, are expected to float their shares on the Rwandan bourse, the Rwanda Capital Markets Authority (CMA) announced Wednesday.
“We expect more cross listing from the region this year as well as local companies since some have shown interest already,” Robert Mathu, the Executive Secretary of CMA said.
He spoke during the signing of a memorandum of understanding between the National Bank of Rwanda and the Capital Markets Authority that seeks to streamline the working relationship between the two institutions. The signing took place at the Central Bank.
The announcement comes as uncertainty surrounds both the primary and secondary markets because companies withdraw from listing their shares to watch market trends given economic volatility in the regional economies.
Mathu stressed that more cross listing would be good for Rwanda as it would facilitate full market integration with regional markets in the drive to integrate the regional economies.
Although MTN government owned shares were bought by MTN
group towards the end of last year, against the initial plan to have Rwandans invest in the telecom company, the privatisation policy is in full force.
“We are carrying out a survey to see how best even Small and Medium Enterprises can raise long term capital through markets,” added Mathu.
Under the pact, the central bank and the capital markets authorities agreed to information sharing between the two institutions while BNR will play a supervisory role of the activities of CMA.
It is also important because it will give guidelines to other
participants of the market such as custodians, stockbrokers and some commercial banks.
Ambassador Clever Gatete, the Governor of the Central Bank said it is important to develop the market because it attracts local and foreign investors which help to comply with international standards.