Capital Market Potentials to Unlock Financial Investment Opportunities in Rwanda

Abstract

This research entitled “Capital market potentials to unlock financial investment opportunities in Rwanda” was conducted mainly in Capital Market Authority with the main aim of assessing the investors understanding of the functioning of capital market in Rwanda, identifying the extent to which capital market can contribute to financial investment in a country and play a crucial role in economic development as envisaged in Rwanda vision 2020 to transform the financial sector and open opportunities to local and international investors. To achieve the research objectives, the population under this research consisted of capital market beneficiaries totaling to 50 potential respondents from the different institutions and the research was conducted by means of the questionnaires and the respondents to be interviewed to supplement on information gathered with questionnaires. The stratified random sampling technique was used to select respondents. The researcher considered the secondary and primary data using triangular method which consist of both qualitative and quantitative tools to explore and present data and their relationships. The result was based on review, description and analysis of the existing literature(theories and empirical studies).Despite different thoughts as to the capital market as a financial an investment opportunity, a well-developed capital market can lead a country to the economic growth and prosperity provided that the latter is backed by capable institutions of all sorts(rules,laws,social values and norms, financial, political…..etc.) and domestic resources(smaller households savings)mobilized through strengthening the formal sector like banks and the informal financial institutions. The researcher ended with recommendations to different actors in a country development on how capital market boost economic development and prosperity and provide easy access to long term financing, attract foreign direct investment that was previously lacking.