Rwanda's modernisation paying off for exchange 05 September 2011Kigali Reporter: Anna Reitman
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After modernising its payment and settlement system, The Rwanda Stock Exchange (RSE) has reached another milestone when the country's largest commercial bank listed on the exchange.
"These are exciting moments not just for the Bank of Kigali but most importantly for the young stock exchange as participation as an investor is quick and straight forward, not materially different than what you would expect from London, Singapore or New York," said Bank of Kigali chairman, Lado Gurgenidze.
This second domestic listing on the nascent market comes after the move to two day settlement on shares or bonds, made possible by the implementation of the Rwanda Integrated Payment and Processing System (RIPPS) by the Central Bank of Rwanda.
"The effect of this development will be to make the securities market more efficient by increasing transaction speed thereby making the securities traded on the RSE faster to transfer and convert into cash than before," wrote RSE.
The Rwanda Integrated Payment and Processing System implement by the exchange, just seven months in operation, is comprised of Real Time Gross Settlement (RTGS), the Automated Clearing House (ACH), the Automated Transfer System (ATS) and the Central Securities Depository (CSD).
Before the new settlement cycle was adopted in August, equities took five days and bonds took three days to settle.
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