The Ministry of Finance and Economic Planning, the Capital Market Authority and the Rwanda Stock Exchange officially launched on Monday the delivery of an investor readiness program services aiming at identifying SMEs with potential for raising capital and deliver technical assistance to support them in preparing for the market.
The event marked the commencement of the Investment Clinic which is considered as a catalyst to stimulate capital market uptake by the private sector especially the SMEs.
One of the most salient challenge in the capital market development in Rwanda and the region is the low number of businesses entering the market to raise capital that is appropriate for growth and expansion. The concept of introducing the Investment Clinic is to intervene and catalyze private sector companies that constitute the majority of the businesses in the economy. The expected output from the Investment Clinic Secretariat is to see an increase in the number of listings on the RSE.
The Ag. Executive Director of CMA Rwanda, Eric Bundugu noted that noted that: “The purpose of the Investment Clinic is to process the companies in need of capital to be investment-ready. CMA and RSE will provide guidance and support on the legal and regulatory framework. The expected output from the Investment Clinic Secretariat will either be that these companies will list on the main Board of the RSE or will be listed on SME Board.”
Stephen Ruzibiza; CEO of the Rwanda Private Sector Federation (PSF) said that: “You may know companies such as Mercedes Benz and the likes from the advanced economies they live longer a 100 or 200 years and they are able to do so due to the best practices imbedded in their business models such as those of investment clinic we are launching today. We want to see more companies from Rwanda live more than 50 years at least past their founders”.
Ruzibiza took the opportunity to call upon the Private Sector Federation members to join this program as it is of great value to them in the country’s journey to sustainable business development.
The CEO of Rwanda Stock Exchange, Pierre Celestin Rwabukumba stressed that: “This event is a confirmation of our continued efforts be the catalyst for the country’s economic growth through the private sector. The expected output from the Investment Clinic Secretariat is to see an increase in the number of listings on the Rwanda Stock Exchange. In addition, it would still be very productive to see companies raising appropriate funding using capital market structures even where they do not list on the exchange immediately or at all. The underlying objective is to mobilize appropriate funding for the private sector.”
Rwabukumba added that: “We want to widen the coverage of companies willing to embrace the capital market route as a way of giving the opportunity to the general public to own part of some of the most productive and profitable sectors of economy using their hard gained savings but at the same time allowing the companies to also expose themselves to the highest standards of good Corporate Governance, accountability and transparency that our country has been at the forefront for many years now but mostly within the government apparatus.”