Rwanda launches investment fund to promote savings
The fund targets low income populations.The Rwandan government and the Capital Market Authority (CMA) are launching a new fund in a bid to promote a culture of savings and investment in the East African nation.
The objective is to help people with a small income to access formal financial products.
The 'Iterambere Fund' management will raise awareness about the fund's benefits and mobilise investments during the Initial Public Offering (IPO) period, which will last two months.
The minimum investment is Rwf2,000 (€2.3) and there is no ceiling for investments. Investors are also able to redeem their units or buy more from the fund at anytime.
"The longer you leave your money invested, the greater the opportunity for wealth creation as the money is put to use to earn more money," the fund management said in a statement.
The fund will opt for product diversification, including equities, treasury bonds and money markets.
It is open to all Rwandans, East African Community nationals investors and international institutional investors,
within the permissible legal framework.
According to the FinScope Rwanda 2016 survey, about 86 per cent of adults - or 5.1 million individuals - save through various types of formal and informal savings.