The head of Rwanda Security Exchange task force, also vice-governor of the National Bank of Rwanda, Consolate Rusagara, has revealed that before the end of 2005, the first structure of Rwanda stock exchange market will be launched.
The revelation was made during a debate at Hotel Novotel, Kacyiru that attracted various stake holders. In attendance was also the Governor of the National Bank of Rwanda (BNR), Francois Kanimba, and representatives of Rwanda's financial institutions. Rusagara in her reaction on the progress of the Rwanda's capital markets, said that the launch of the first structure of the Rwanda stock exchange will mark the shift from Rwanda Capital markets to a permanent structure - the 'Rwanda stock exchange', the first of its kind in the country.
She added, that the idea that was initiated by the government of Rwanda through the national bank is to set up a savings fund, where Rwandese will be sensitized on the uses and benefits of the treasury bills in the economic growth of the country.
History of the Stock Exchange
In the 12th Century, French's courratier de change was concerned with managing and regulating debts of agricultural communities on behalf of the banks. Because this company also traded with the debts, they could be called the first broker.
In late 13th Century, Bruges commodity traders gathered inside the house of a man called Van der Bourse, and in 1309 they institutionalized this and until now it is the "Bruges Bourse". The idea quickly spread around Flanders and neighbouring counties and "Bourses" soon opened in Ghent and Amsterdam.
In the middle of the 13th Century, Venice Bankers began to trade with government securities. In 1351, the Venician Government outlawed spreading rumors intended to lower the price of government funds. Pisa, Verona, Genoa and Florence also began trading with government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.
In 1602 the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds. Today many countries around the world have adopted stock exchange as a vital tool towards accelerating economic growth and aiding the privatization policy.
In Africa, many countries have set up stock exchange markets and these include South Africa stock exchange, Nigeria Stock exchange, and Botswana stock exchange and in East Africa, the stock exchange markets are also growing rapidly for example, the Uganda, Kenya and Tanzania stock exchanges are performing well.