Rwanda is one of the fastest growing economies in the world in terms of investment, real estate, banking, manufacturing and of course the stock exchange.
The purpose of this article is to acquaint our readers on how they can invest on the Rwanda Stock Exchange (RSE).
Where to Start?
The first step is to find the right local brokerage firm, which will make transactions on your behalf. It will help you open a Central Depository System account in a Central Depository system (CDS) as an investor. CDS is an online system that electronically facilitates transactions of shares across the RSE, removing the use of paper certificates as it was before.
The list of all the market participants in the stock market is given on the RSE official website andOnly these RSE Members are authorized in opening your account.
Typically an investor needs recent photographs, certified copies of passport .an identification card (ID) or driving license and tax registration certificate. In case an investor is a company, it would be required to submit a certificate of registration. Usually the account is opened in one day once the documents are complete.
As a foreign investor, you will have to talk to your brokerage firm of the ways they can accommodate your investments. Most of the companies offer both, email and telephonic communication to facilitate the buying and selling. Still, it depends on how you as an investor and your broker come to an agreement and arrangements can be made according to that.
When you open an account, you get a CDS account number and secret question and answer to identify you whenever you are tradingat Rwanda stock exchange.
Any investor, whether local or international is allowed to open multiple accounts and trade in them separately., you can also open different accounts with .different members of the stock exchange.
You can learn more about Central Depository System when you get in touch with one of the RSE Members or when you visit RSE offices .
What after you have opened an account in the Central Depository System?
One thing to remember here is that the trader account and dividend account go separately. Therefore, it is better to have a local bank account where your dividends go instead of getting them wire transferred every time. After you have opened a trader account with the CDS, you can wire transfer your investment in your account and begin trading right away.
- BY HOPE MAGAZINE
- POSTED 15TH OCTOBER 2015