Rwanda Stock Exchange staff during the presentation./ File
By
When it comes to the world of stock markets, many people, not
just Rwandans, are in the
dark. Many would rather sew their money in
their mattresses and the idea that someone can place their money in
unpredictable stocks waiting for annual returns is very foreign.
Many business people would rather go down a tested route; that of buying and selling at a profit.
Rwanda Stock Exchange (RSE) is pretty small compared to neighbouring
countries that have capital markets. Just last week, there were only
eight players of the market, nothing much to write home about.
However this week saw some action with the entrance of a South
African investment firm and a local cement manufacturer into the market.
However, just to show that financial literacy is not Rwandans’ very
strong point, when the cement company made its initial appearance on the
market, over 340 million shares were on offer, but to the surprise of
many, only 6,000 were snapped.
That is quite unusual for a company that shortlists for the very
first time because usually shares are oversubscribed, meaning that
demand largely outstrips supply. It is an indication that the Capital
Markets Authority still has a lot to do in terms of educating the
masses.
It is true that it usually carries out sensitization campaigns,
especially among the youth such as the annual Capital Market University
Challenge, but that is just scratching the surface.
Rwanda’s economy is always on the upward trend and further growth
could be fueled by an active and vibrant stock market. But before we
arrive at that stage, a lot of sensitization will be needed.
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