The financial market, as any other one, presents opportunities and constraints due to the economic environment of the country. The stock exchange grants a certain number of advantages for the economy in general and for the financial system in particular. So even thought it still is at an embryonic stage, the RSE (Rwandan Stock Exchange) presents opportunities linked with the country’s situation: * The extension of the property in Rwandan companies
It is planned that once a company is quoted, the property is widened to much more people. Besides, the government widened the property of companies by favoring the development of investment companies and the other collective investment bodies where the small investors could contribute. Thanks to these institutions they can buy shares of the State companies, become owner of the capital and receive annual dividends.
* The facilitation of direct foreign investment
The RSE will help in increasing the direct foreign investment by allowing the foreigners strategic investors to acquire, thanks to the resumption, important parts in companies but the RSE must guarantee them a way of exit.
* Creation of new financial instruments
The stock exchange plans the creation of financial instruments that are non-existent nowadays. These instruments include the swap options and many others that can bring diversity and an innovation to the existing financial instruments, namely, the shares and the obligations.
* Supplies an ease of exit for investors
The stock exchange works as a mechanism that allows the investors to enter in or to withdraw from the financial market. In Rwanda, there are several companies of which the State held a consequent part of shares such as the BRALIRWA or the Bank of Kigali. A few years ago, the government could not have been able to withdraw. But thanks to the RSE, the State was able to withdraw from these companies in a fair market, where the strengths of the offer and the demand...
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