Rwanda's small but growing economy is trying to broaden its financial sector to create new opportunities for business. To help, IFC is supporting Rwanda's efforts to develop and strengthen its recently-launched securities exchange.
Under an agreement signed with the government, IFC will help Rwanda develop an appropriate legal and regulatory environment for issuing and trading bonds. IFC will also implement a training and certification program for securities market participants, and establish a framework for integrating Rwanda’s capital markets with other markets in East Africa.
"Partnering with IFC will enable us to tap into the World Bank Group's institutional expertise. It will also help expand our investment opportunities in the Rwandan market, particularly in nongovernmental bonds," said Henry Gaperi, Chairman of Rwanda's Capital Markets Advisory Council.
Well-developed securities markets provide an efficient means of channeling private funds into large infrastructure projects, such as housing, power generation, or transport. These projects are critical for helping developing economies, like Rwanda’s, provide services, create jobs, and reduce poverty.
Private companies benefit from well-regulated markets by using equities and bonds to raise long-term capital, which limits their reliance on expensive loans.
ACTIVE IN SEVERAL COUNTRIES
IFC's Efficient Securities Markets Institutional Development program is active in several African countries -- including Kenya, Rwanda, Tanzania, and Uganda -- helping securities market regulators improve their expertise and build environments conducive to mobilizing long-term capital.
On the supply side, the ESMID program supports potential issuers and intermediaries in bringing transactions to the securities markets.
In East Africa, IFC and the program partners are working with central banks, securities’ regulators, stock exchanges, and other stakeholders to simplify regulations and procedures for issuing and trading bonds, establish an appropriate market structure, strengthen secondary markets, build capacity of market participants, and facilitate regionalization of the markets.
"“IFC, the World Bank, and the Swedish International Development Cooperation Agency have pledged $5.5 million to help establish a program for developing securities markets in Sub-Saharan Africa," said Jean Philippe Prosper, IFC Director for Eastern and Southern Africa. "Through this initiative, we are working with governments to enhance institutional capacity in the region and to facilitate market transactions."
For more information contact:
Johannesburg, South Africa
Tel: +27 11 731 3175