CMA and IFC in improving corporate governance practices in Rwanda

The Capital Market Authority (CMA) in partnership with International Finance Corporation (IFC), a member of the World Bank Group host a breakfast meeting themed “Corporate Governance; the pathway to sustainable business growth in Rwanda” on Wednesday, November 16th , 2016 to raise awareness on issues related to Corporate Governance as a sustainable driver of business growth.

Good corporate governance practices will attract investors to emerging markets’ businesses and address the barriers to access long term funding with lower transactions costs and hence lower cost of capital. Increased access to capital encourages new investments, boosts economic growth, and provides employment opportunities.

The Executive Director of Capital Market Authority (CMA), Robert Mathu stressed that “IFC has consistently cooperated with CMA in helping companies in Rwanda to explore capital markets as a source of long-term finance. A key prerequisite to access capital from public markets is to adopt and internalize corporate governance practices to instill confidence among investors.”

He added that “In Rwanda the Capital Markets Authority (CMA) together with other organizations have been at the forefront of ensuring good governance especially for companies listed at the Rwanda Stock Exchange.”

Ignace Bacyaha, IFC Country Resident Representativesaid that “Good corporate governance is required in all sectors, but is of particular importance in financial institutions.  The financial sector plays the central role of intermediating savings and allocating capital in the economy.  Firms in the financial sector are key players in creating market disciplines favouring better standards in the corporate sector more generally.”

The CEO of Bank of Kigali, Dr Diane Karusisi stressed how BK embraced corporate governance by being so transparent and fight corruption and again they embraced customer care service.

The Auditor General, Obadiah Biraro while addressing the gathering from various corporates he noted how it's important to embrace good practices of corporate governance like fairness, transparency and accountability.

He noted that “Improved corporate governance practices increase access to markets and lower the cost of capital, which encourage new investments, boosts economic growth, and provide employment opportunities.” He added that “Businesses that operate more efficiently tend to allocate and manage resources more sustainably, while better stakeholder relationships help companies address environmental protection, social and labor issues.”

Domestic and international portfolio investors have had opportunities to own assets in the beverage industry, banking and telecommunication companies listed at the Rwanda Stock Exchange and in the Rwandan bond market. Rwanda has a clear vision for growth through public and private investments and well-functioning institutions underpinned by high level of governance.