Rwanda crafts laws that aim to expand financial sector

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Duncan Miriri Kigali

Rwanda would soon allow derivatives trading on its stock exchange and a new investment code, which could offer tax breaks for foreign investors, had been sent to parliament, Finance Minister Claver Gatete said last month.

The tiny African state has ambitions to become a regional financial hub and wants to develop its capital markets and attract fund management and technology firms, although its three-year-old stock exchange has just five listings so far.

Gatete said the country had just passed a law allowing the trading of derivatives on the Rwanda Stock Exchange to give local and foreign investors a chance to hedge risk through futures and options.

“The capital markets authority is now working with investors to see how they can start because now the rules and regulations are in place,” he said on May 21.

The cabinet had approved an investment code offering incentives to firms investing in Rwanda, which was now being considered by parliament.

Gatete also said Rwanda planned to issue another dollar bond in future after its successful $400 million (R4.2bn) eurobond last year.– Reuters

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