CMA Rwanda CEO talks business & market growth
The Capital Markets Authority is upbeat to drive economic growth in Rwanda with plans to bring in new investment products, new regulatory frameworks, more focus on green financing and inclusion of small and medium enterprises at the stock exchange. CNBC Africa’s Flora Limukii spoke to Thapelo Tsheole, Chief Executive Officer at the Capital Markets Authority for more insights.
Wed, 29 Jan 2025 14:55:17 GMT
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AI Generated Summary
- The CMA is prioritizing the completion of regulatory frameworks, introduction of new investment products, and enhancing public education to diversify the investor base and drive economic growth.
- Strategic initiatives include collaborations with the National Bank of Rwanda for digital currency regulations, efforts to increase listed companies on the RSE through privatization, and integration of SMEs into the capital markets.
- The focus on green financing, ESG standards, and sustainable bonds aligns with Rwanda's goal to position itself as a green finance destination, attracting investments that promote environmental and social responsibility.
Rwanda's Capital Markets Authority (CMA) is on a mission to drive economic growth in the country by introducing new investment products, enhancing regulatory frameworks, focusing on green financing, and encouraging the participation of small and medium enterprises in the stock exchange. In an exclusive interview with CNBC Africa, Thapelo Tsheole, the Chief Executive Officer of the Capital Markets Authority, shared insights into the strategic initiatives planned for 2025 and beyond. Tsheole highlighted five key priorities that the CMA will focus on in the coming year. Firstly, completing the series of regulatory frameworks to provide a solid foundation for the capital markets. Several regulations have been fast-tracked, with the upcoming highlight being the law regulating capital markets. Additionally, the CMA aims to introduce new products such as Real Estate Investment Trusts (REITs), Exchange-Traded Funds (ETFs), Collective Investment Undertakings (CIUs), and laws regulating funds, creating a diversified portfolio for investors. The authority also plans to enhance public education to increase awareness and participation in the capital markets. Furthermore, the development of IT infrastructure and fintech innovations are key areas of focus for the CMA to modernize the market. In response to the growing trend of digital transformation, the CMA is collaborating with the National Bank of Rwanda to introduce regulations for digital currencies, set to be implemented by mid-2025. Tsheole emphasized the importance of regulatory frameworks to foster market development and position Rwanda as an attractive destination for innovative financial instruments. Regarding increasing the number of listed companies on the Rwandan Stock Exchange (RSE), Tsheole mentioned that privatization initiatives by the government could drive more companies to seek listing opportunities, supporting market growth. Moreover, strategic collaborations between the CMA and the RSE aim to boost business development efforts and attract more companies to the exchange. Small and medium enterprises (SMEs) play a significant role in Rwanda's economy, and the CMA is actively exploring options to integrate SMEs into the capital markets. Plans include setting up an SME fund and conducting investment clinics to guide SMEs through the listing process, showcasing success stories like Maiwa Grain Millers to inspire other SMEs to leverage the capital markets for growth. Green financing and sustainable practices are also top priorities for the CMA, which has initiated guidelines for Environmental, Social, and Governance (ESG) standards and sustainable bonds. By positioning Rwanda as a green finance destination, the CMA aims to attract investments that promote environmental and social responsibility. With Rwanda holding the presidency of the African Securities Exchanges Association (ASEA), Tsheole sees opportunities to leverage this platform to promote regional integration and showcase Rwanda as an investment destination. The CMA aims to capitalize on partnerships with financial institutions to bridge the financing gap for SMEs and provide long-term financing solutions. Tsheole highlighted the importance of collaboration between regulators and financial institutions to create a conducive environment for financial inclusion and promote confidence in the capital markets. Through education campaigns, webinars, and regulatory support, the CMA is working towards a more vibrant and inclusive market for all stakeholders.