Vision,Mission & Values
Vision
To be a big contributor to the economic development and key player in leading Rwanda to be a regional Financial center.
Mission
To provide the main platform for promotion of savings and raising funds for long term investment in Rwanda and beyond.
Values
Efficiency, Innovation, Transparency, Accountability, Integrity
Background
DEFINITION OF A STOCK EXCHANGE
Organized and regulated financial market where securities are bought and sold at prices governed by the forces of demand and supply. Stock exchanges impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.
ESTABLISHMENT OF RWANDA STOCK EXCHANGE (RSE)
The Rwanda Stock Exchange Limited was incorporated on 7th October 2005 with the objective of carrying out stock market operations. The Stock Exchange was demutualized from the start as it was registered as a company limited by shares. The company was officially launched on 31st January 2011.
RWANDA STOCK EXCHANGE OWNERSHIP STRUCTURE
- 20%Government of Rwanda
- 10%CDH Capital Ltd
- 10%Dyer & Blair Rwanda
- 10%MBEA Brokerage & Financial Services Rwanda
- 10%African Alliance Rwanda
- 1% SONARWA
- 8%BRD
- 1%SORAS
- 10%Faida Securities Rwanda
- 10%Baraka Capital
- 10%Rwanda Social Security Board (RSSB)
Role of Rwanda Stock Exchange
Stock Exchanges have multiples roles in the economy. This may include the following:
Raising capital for businesses
The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.
Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity resulting in stronger economic growth and higher productivity levels of firms.
Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve management standards and efficiency to satisfy the demands of the stakeholders. Creating investment opportunities for small investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford.
Government capital-raising for development projects
Governments at various levels may decide to borrow money to finance infrastructure projects by selling bonds. The issuance of such bonds can obviate the need, in the short term, to directly tax citizens to finance development.
Barometer of the economy
At the stock exchange, share prices rise and fall depending, largely, on market forces. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.