Rwanda Works Towards the Middle Income Status

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A new citizen-oriented fund, named ‘Iterambere Fund,’ has been released by the Rwandan government to foster savings culture and mobilise resources domestically to spur economic growth. Rwanda Prime Minister, Anastase Murekezi has said that the funds, which will be run by the Rwanda National Investment Trust Ltd (RNIT), will be a big boost to Rwanda’s push to achieve middle income status by the year 2020.

Speaking at the launch in Kigali, Premier Murekezi said that the Fund is in line with the country’s Vision 2020 goals under which the Government projects income per capita to reach $1,240 against economic growth of 11.5 per cent per annum. He encouraged everyone – both government and private sector- to take advantage of the opportunity to promote a savings culture.

The FineScope Rwanda Survey 2016 indicates that about 89 per cent of adult Rwandans have access to financial services. To achieve desired investment targets, the financial sector requires a variety of products and instruments like unit trusts. People who have invested in the Fund will be able to sell their units six months after the Initial Public Offering (IPO) or primary market, a two month period which started on July 12, 2016, according to André Gashugi, RNIT chief executive.

The Minister for Finance and Economic Planning, Claver Gatete, said that the goal is to achieve gross national investment target of 30 per cent of GDP by the end of second Economic Development and Poverty Reduction Strategy (2017/18).

Stockbrokers include African Alliance, Baraka Capital, CDH Capital, Core Securities, MBEA brokerage and SBG Securities.

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