Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Rwanda to allow derivatives trading, offer more incentives for foreign firms soon

22 May 2014, 08:23

Kigali -  Rwanda's finance minister said the country will soon allow derivatives trading on its stock exchange and a new investment code, which could offer tax breaks for foreign investors, has been sent to parliament.

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.

Finance Minister Claver 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 told reporters on the sidelines of the African Development Bank's annual meeting, being held in Kigali.

The cabinet had also approved an investment code offering incentives to firms investing in Rwanda and the code was now being considered by parliament, the minister said.

He did not provide details of the incentives but a Rwanda Development Board official said in March that the investment code might offer reduced tax rates for investors in energy, transport and logistics, as well as to fund managers and export-oriented projects.

Gatete also said Rwanda planned to issue another dollar bond in future after its successful $400 million Eurobond last year.

"Definitely we will be in the market but we will let you know when we are ready," he said.

Gatete said the International Finance Corporation, the World Bank's private sector financing arm, had successfully issued a $22 million bond in the local franc currency last week, in a move aimed at deepening the local capital market.

The central bank forecast last month that Rwanda's economy would grow by 6 percent this year, but Gatete said the first-quarter performance suggested growth would exceed 6 percent, helped by a strong agricultural sector.

"From the indications of the first quarter I think we are getting a bit better (than) what we hoped," he said.

The east African nation saw growth slip to 4.6 percent last year, from 7.3 percent in 2012, after donors cut aid over Rwanda's alleged involvement in a conflict in the neighbouring Democratic Republic of the Congo.

Donors have mostly resumed bilateral assistance and President Paul Kagame's government has won praise for its economic reforms although his opponents and rights groups accuse him of trampling political and media freedoms, something the government denies.

"Inflation is 2.4 (percent) now. It has been in that range, it has not exceeded 5 percent. We are targeting not to exceed 5 percent by the end of this year," Gatete said.

Revenue collection had fallen below target in line with the economic slowdown last year but Gatete said the government had enough resources to fund its programmes.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Victor Tinto
Its a 1 horse race to State House...

Its a 1 horse race to State House, DP William Ruto has mocked the CORD Coalition. Read more...

Submitted by
Victor Tinto
Enjoy your time left in power, We...

CORD Co Principal Moses Wetangu'la has told the Jubilee Coalition to enjoy its last few months in power before it is voted out in the 2017 elections. Read more...

Submitted by
Victor Tinto
Stop hiding in State House and sa...

ODM MP's have called on President Uhuru Kenyatta to release drought aid and to stop sitting on public funds. Read more...

Submitted by
William Korir
Machakos no longer a CORD zone, M...

Machakos is now a Jubilee Party zone and no longer CORD, Governor Alfred Mutua says. Read more...

Submitted by
William Korir
REVEALED: Why Kalonzo attacked Uh...

There was no holding back for CORD co principal Kalonzo Musyoka as he spoke his mind during Mashujaa Day celebrations in Machakos. But why? Read more...

Submitted by
William Korir
I will step down if I lose in 201...

President Uhuru Kenyatta says that he is ready to step down from office if he loses the 2017 General Elections. Read more...