An Analysis Of The Capital Market And Investment Development In Rwanda. A Case Study Rwanda Capital Market

Table of Contents

DEDICATION ............................................................................................................................................... i

ACKNOWLEGEMENT ............................................................................................................................... ii

Appronil ..................................................................................................................................................... iii

List of tables .............................................................................................................................................. viii

List of figures ................................................................................................................................. ix

CHAPTER ONE: GENERAL INTRODUCTION ..................................................................................... 1

I. I Introduction ............................................................................................................................................. 1

2. Statement of the problem ......................................................................................................................... 1

3. Research objectives .................................................................................................................................. 2

3.1 General objective ................................................................................................................................... 2

3.2 Specific objectives .................................................................................................................................. 2

4. Research questions .................................................................................................................................... 2

5. Scope of the study ..................................................................................................................................... 3

6. Significance of the study .......................................................................................................................... 3

7. kthodology ............................................................................................................................................ 3

7. I Research design ....................................................................................................................................... 3

7.2 Population of the study ........................................................................................................................... 3

7.3 San1ple size ............................................................................................................................................. 4

7.3.1 Sampling methods ................................................................................................................................ 4

7.-1 Data collection methods .......................................................................................................................... 4

7.4.1 Primary data ......................................................................................................................................... 4

7.-1.2 Secondary data ..................................................................................................................................... 4

7.5 Tools for data analysis ............................................................................................................................ 4

8. Organisation of the study .......................................................................................................................... 5

CHAPTER TWO: LITERATURE REVIEW ............................................................................................. 6

2.1 lntroduction ............................................................................................................................................. 6

2.2.1 Types or capital market instruments .................................................................................................... 7

2.2.2 The capital market in Randa .............................................................................................................. 8

2.2.3 R Vanda stock exchange ...................................................................................................................... 8

2.2.4 Trading operations at the Rwanda stock exchange ........................................................................... 10

2.2.--L I Prin1ary 111arket. .............................................................................................................................. 10

2.3 l(ey concepts used at the Rwanda stock exchange and other stock exchanges .................................... 13

2.4 Investment in stock Exchange ............................................................................................................... 18

2.4.1 Precautions for investor ..................................................................................................................... 19

2.4.2 Instruments and statistical calculations for maximum gain ............................................................... 20

2.5 Investment developments in Rwanda .................................................................................................... 23

2.5. l Investment destination ...................................................................................................................... 24

2.5.2 COORDINATION ............................................................................................................................ 26

CHAPTER THREE: METHODOLOGY .................................................................................................. 29

3.1 Introduction .......................................................................................................................................... 29

3.2 R.esearch design .................................................................................................................................... 29

3.3 Study population·················································•···•···········•··································••.•···························· 30

3.3.1 Sample design and sample size .......................................................................................................... 31

3.3.2 Sources of data ................................................................................................................................... 31

3.3.3 Prin1ary data ....................................................................................................................................... 31

3.3 . .J Secondary data ................................................................................................................................... 32

3.4 Instruments and techniques of data collection ..................................................................................... 32

3.4.1 Library search .................................................................................................................................. 32

3..J.2 Questionnaire ..................................................................................................................................... 32

3.-l-.J lnter'ie,,· guide ...................................................... ........................................................................... 33

3.5 Data processing and analysis ................................................................................................................ 33

3.5.1 Editing ................................................................................................................................................ 33

3.5.2 Tabulation ......................................................................................................................................... 34

3.5.3 Limitations of the study .................................................................................................................... 34

CHAPTER FOUR: DATA ANALYSIS AND INTERl'IZI-TATION ....................................................... 35

--I. I lntroduction ........................................................................................................................................... 35

4.2 The profile ofCMAC .............................................................................................. : ............................. 35

4.2.1 Objectives ofCMAC ......................................................................................................................... 35

4.2.2 Vision ................................................................................................................................................. 35

4.2.3 Mission ............................................................................................................................................... 36

--1.2.--1 Core value .......................................................................................................................................... 36

4.2.5 Organizational structure ................................................................................................................... 37

4.2.6 CMAC source ol' fund ........................................................................................................................ 37

4.2. 7 CMAC revenue sources ..................................................................................................................... 38

4.2.X Authorities responsible for implementation ...................................................................................... 38

--1.2. 9 Services to the stakeholders ............................................................................................................... 38

4.3 Background information of the respondents ......................................................................................... 39

4.--1 Analysis and interpretation oi'primary findings ................................................................................... 42

4.7 The general business environment in Rwancla ...................................................................................... 48

4. 7. t The general market analysis in Rwanda ............................................................................................. 50

4. 7.2 Economic perspectives ....................................................................................................................... 50

4.7.3 Geographical perspective ................................................................................................................... 51

4.8 Membership rules at the OTC market.. ................................................................................................ 51

Table 14: Membership Admission Requirements ....................................................................................... 52

4.X. The trading rule, ................................................................................................................................ 53

4.8.2 The listing rules for equities ............................................................................................................... 53

4.9 Regional market analysis ...................................................................................................................... 55

4.1 0 The advantages of capital market on Rwanda's economy .................................................................. 57

CHAPTER FIVE: SU1v!MARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ......... 59

5.1. troductio11 ......................................................................................................................................... 59

5.2 Summary or major findings ................................................................................................................. 59

5.3. General conclusion ............................................................................................................................... 61

5.4. Recommendations ................................................................................................................................ 61

5.5. SUGGESTIONS FOR FURTHER RESEARCH ................................................................................ 62

BIBLIOGRAPHY ....................................................................................................................................... 63

APPENDICES ............................................................................................................................................ 65

Appendix I .................................................................................................................................................. 65

Appendix II ................................................................................................................................................. 66