The Minister for Finance and economic planning, Ambassador Claver Gatete has called on Rwandans to buy government bonds that have now been officially slotted on the Rwanda stock markets.
The minister said if Rwandans buy the shares, it will benefit the country in areas of economic development, poverty reduction and increase the performance on the economy, unlike when the bond shares are bought by foreign investors.
On February 17, the Government of Rwanda announced Frw 12.5 billion (US$18.3 million) Treasury bonds with a three year maturity period.
The National Bank of Rwanda received 56 bids from different categories of investors with Banks accounting for 52.85percent, institutional investors 46.16percent and retail investors 1.20percent. Local investors took the lion’s share with 94.26percent while regional investors accounted for 8.04percent.
Gatete said, more awareness programs to enlighten the public on importance of long term savings culture through share buying, an aspect that has not been fully explored in Rwanda, despite the existence of Rwanda Stock Exchange- which also has five listed companies, most of them foreign.
In this regard, the Ministry of Finance and Economic Planning in collaboration with the National Bank of Rwanda, Capital Market Authority and Rwanda Stock Exchange will continue to educate potential investors.
So far, the issuance of the RWF12.5 billion Treasury bond has been successful with a subscription rate of 140percent with the highest ever number of applications recorded since its debut in 2008.
“We will continue to embark on teaching, explaining and preparing potential investors ahead of time as government bond has best returns, no risk of any kind,” Minister Gatete said, and added that with time; the community will benefit if they fully participate.