Rwanda's CMA, BaFin partner to hold capital market seminar

Rwanda’s capital market has received a significant boost with the recent partnership between Rwanda’s Capital Markets Authority (CMA) and Germany’s financial regulator BaFin. The two institutions recently hosted a two-day seminar aimed at exposing professionals in Rwanda’s capital market to the development and regulations of Germany's market. Johannes Engels, Senior Officer in the Department for International Policy, Financial Stability, and Regulation at BaFin, joined CNBC Africa for an insightful discussion on the seminar and the cooperation between the two countries. Engels highlighted the positive impression he and his colleagues had of Rwanda's capital market following their initial meeting in Kigali in January 2016. He commended the developments in the country and emphasized the importance of cooperation with organizations like GISET for international collaboration. The seminar provided Engels and his team with a comprehensive overview of Rwanda's regulatory framework and market developments, setting a solid foundation for future cooperation. During the interview, Engels discussed the supervision architecture in Rwanda, praising the robust regulatory framework that prioritizes stability. He emphasized the importance of understanding the regulatory basis in the country, particularly in areas like real investment trusts, equities, and bonds. Engels expressed interest in further collaboration and dialogue between supervisory bodies to strengthen the financial market and attract investments. The conversation also touched on Germany's role as an investor in Rwanda's capital market. Engels highlighted the technical cooperation between supervisors and the potential for increased dialogue and collaboration between the two countries. By fostering expertise exchange and knowledge sharing, Engels believes that Rwanda and Germany can build a strong foundation for future investments and partnerships. One of the key points raised during the interview was the discussion around automated trading systems. Engels acknowledged the advanced nature of Germany's automated trading systems but emphasized that the implementation of such systems takes time and expertise. He mentioned the willingness of German experts to support Rwanda in adopting automated systems and encouraged further collaboration in this area. Regarding financial stability, Engels refrained from making specific analyses but noted the promising cross-border cooperation between Rwanda, Uganda, Kenya, Tanzania, and Burundi. He highlighted the incentives of such cooperation and drew parallels between the East African Visa system and the European Union, emphasizing the positive impact of regional integration on economic growth and market stability. In conclusion, the partnership between Rwanda's CMA and Germany's BaFin represents a significant step towards enhancing Rwanda's capital market and fostering international collaboration. Engels' insights shed light on the potential for increased dialogue, expertise exchange, and investment opportunities between Rwanda and Germany. As Rwanda continues to strengthen its regulatory framework and market practices, partnerships like these are poised to drive growth and development in the country's capital market.