Wednesday, 28 August 2013

Rwanda leads region in investor protection – World Bank report

share_marketThe move by Rwanda to review investment-related laws which culminated into the overhaul of company law in 2009, has paid off. The country has been ranked top in the East African Community (EAC) trade for having the strongest laws to protect investors.



The World Bank Doing Business in the East African Community 2013 report ranked Rwanda seventh out of the 185 countries surveyed globally, followed by Burundi that ranked 49th. Kenya and Tanzania, which tied at 100th position followed, while Uganda at 139th, trailed its EAC peers.




“While many economies around the world have strengthened investor protection, Rwanda and Burundi have made huge progress since 2005, making them the biggest improved countries in sub-Saharan Africa,” the report said.




The report also noted that the EAC has been more active than any other regional bloc surveyed in strengthening legislation to further protect and empower minority shareholders in Africa.

According to the report, regulatory reforms in favour of minority shareholders build investor confidence in domestic firms and the economy.




Laws

Mr Eusebe Muhikira, the head of trade and manufacturing department at the Rwanda Development Board, said the government introduced reforms, especially in the commercial sector, to strengthen the legal framework.




“The new company law boosts investor protection and makes it mandatory for directors to disclose personal interest in any firm or deal they may be involved in,” Muhikira noted.

Mr Stephen Sang, a business consultant, noted that if a country has poor regulations, equity markets do not develop, meaning that banks will be the only source of finance that companies require to innovate and grow.




Rwanda leads region in investor protection – World Bank report

2 comments:

jay paul said...

Your post really cool and interesting. Thanks very much.

HP - 17.3" Pavilion Laptop - 8GB Memory - 1TB Hard Drive - Midnight Black

HP - EliteBook XT920UA 14" LED Notebook - Intel Core i7 i7-640M 2.80 GHz

jay paul said...

Congratulation for the great post. Those who come to read your article will find lots of helpful and informative tips.

Toshiba - 15.6" Satellite Laptop - 2GB Memory - 320GB Hard Drive - Satin Black

Toshiba - 15.6" Satellite Laptop - 2GB Memory - 320GB Hard Drive - Black

Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More

 
Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Walgreens Printable Coupons