from PHYLLIS BIRORI in Kigali, Rwanda
KIGALI, (CAJ News) – A FOUR-year partnership has been reached to expand access to long-term local currency finance for key sectors such as housing, agribusiness, and smaller businesses in Rwanda.
The International Finance Corporation (IFC), the National Bank of Rwanda and Rwanda’s Capital Markets Authority (CMA) have announced the alliance to support the development of the capital markets.
“IFC’s support will enable the local capital market industry to play a key role in supporting Rwanda’s economic development by improving the framework for money markets and government securities markets, among others,” said John Rwangombwa, Governor of the National Bank of Rwanda.
He said strengthening the financial management and governance of businesses would benefit the banks that lend to them and enable them to access capital markets for funding.
He said the CMA would contribute to further developing the local capital market industry by making it more diverse and liquid.
“However, tapping the Rwandan capital markets as an essential source of local currency financing for both the private sector and government requires the development of financing techniques and instruments that meet the requirements of capital market investors,” said Eric Bundugu, CMA Acting Executive Director.
The initiative follows IFC’s support in 2008 to CMA and other key stakeholders under the Efficient Securities Markets Institutional Development Africa programme to help improve local expertise and design effective environments for mobilizing long-term capital.
“Through the Rwanda Capital Market Development project, IFC will support the creation of a solid enabling environment for crowding in private sector finance into key sectors for economic development,” said Dan Kasirye, IFC’s Resident Representative for Rwanda.
– CAJ News