Rwanda’s Capital Market Authority (CMA), an independent agency established to regulate the operations of capital markets in the country and modulate the Rwanda Stock Exchange, has called on investors to bank on the country’s people as a means to grow the East African nation’s economy.
The CMA, which was established in 2007, has acknowledged that two-thirds of global wealth is human capital, as per a recent World Bank Report. As such, the Authority is encouraging Rwandans to bank on their own people to spur development in the region.
In a statement issued this week, the organisation confirmed that Rwandans living in different parts of the world have committed to invest in a wealth creation vehicle known as the Rwanda National Investment Trust (RNIT) Iterambere Fund.
RNIT, a company fully owned by the Government of Rwanda, launched the Iterambere Fund in 2016 and has made a renewed call to Rwandans, urging the public to capitalise on the investment trust.
The Iterambere Fund is an open-end balanced fund that offers Rwandans a planned approach to investment and wealth creation.
Emmanuel Kamanzi, Director of Campus Development at the Rwanda-based University of Global Health Equity, and a former Partners in Health (PIH)-Rwanda Program officer said that accelerations in technology require countries to urgently invest in their people if they hope to compete in the economy of the future.
Quoting the World Bank report, he added that the analysis is a “big call for Rwanda and Africa as a whole.”
The 2017 report, which was released in mid-December, stated that wealth is the assets base that enables countries to generate income (GDP) and grow.
“Investing in people leads to greater wealth and faster economic growth. Human capital – the skills, experience and effort of a population, is the world’s greatest asset. It accounts for about 65 percent of global wealth. However, in low-income countries, only 41 percent of wealth is human capital,” the research explains.
It also states that as countries grow, the share of human capital becomes more important, adding that
in richer countries, human capital is a larger share of total wealth.