Saturday, 2 June 2012

Rwanda : Capital markets eye SACCO funds

Rwanda Stock Exchange (RSE) is now contemplating a move to enter Savings and Credit Cooperatives (SACCOs) on the list of capital markets business so as to tap the pool of funds lying behind these counters and attract more people to invest in the markets.
SACCO’s are community schemes aimed at including the poor into the formal financial sector and access to credit for all. The SACCO’s now over Rwf10 billion in savings since their establishment by government.
The capital marketers believe that these funds should be brought on board and put on the counters for shares sales thus bringing the communities closer to formal financial system.
Shehzad Noordally, the General Manager CDH Capital-a stock brokerage service, says that SACCOs hold a lot of money from the public and investing it in capital markets would benefit members.
This will mean first educating the communities and SACCO officials on the benefits of entering this financial chain, and thus an awareness campaign targeting aimed at educating the public on the importance of investing should be most appropriate approach, says Charles Furaha, legal and corporate affairs manager at Capital Market Authority (CMA)
SACCO officials have welcomed the proposal saying that investing in capital market would help most members have long term investment alternatives, despite the foreseen challenge that people do not understand how these markets work.


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