BUJUMBURA January 29th (ABP) – The governor of the Bank of the Republic of Burundi (BRB), Mr. Edouard Normand Bigendako, officially launched, Friday January 26, 2024, a new capital market called “Bourse du Burundi”, which was initiated by the Central Bank and other shareholders including BANCOBU, BIDF, BCB, BGF, IBB, BBCI and BIJE, with an amount of 1.8 billion BIF.
That new market was created with a view to establishing an efficient, fair and transparent securities market which promotes financing, investment and placement in financial securities and contributes to the economic development of Burundi by offering an attractive range of products and services.
In his special remarks, the governor of the BRB recalled that after the promulgation of the law of February 27, 2019 governing
the capital market in Burundi and the law of October 29, 2020 governing the Capital Market Regulatory Authority in Burundi, the current stage concerns the establishment and operationalization of the institutions of that market, including the creation of the Burundi Stock Exchange, while specifying that the latter will play an important role in managing the stock market, helping and controlling the purchase and sale of securities.
That new capital market is effective in providing businesses and industries with long-term financing, recalled Mr. Bigendako, adding that the capital market in Burundi is well placed to answer questions from institutional and personal investors.
He said that the processes of establishing capital markets in Burundi require coordination and multi-sectoral support. From where he welcomed the support of the Ministry in charge of Finance and all the other institutions which are sparing no effort to ensure that that process succeeds.
On that occasion, the governor of the BRB called on the shareholders of that new market to continue to work together to contribute to the success of its activities.
During the presentations, the head of the Securities Exchange unit at the BRB, Mr. Pierre Damien Mpawenimana who made the presentation on the Burundi stock exchange, indicated that the latter is established to facilitate the trading of financial securities such as stocks, bonds, negotiable debt securities, warrants and investment certificates.
In addition, he explained, that stock exchange is also responsible for taking, in its area of competence, decisions relating to the trading rules published in the form of regulations, the modalities of registration of companies within the compartments of the listing markets, and internal measures concerning stock exchange intermediaries or issuing companies.
Mr. Mpawenimana did not forget to cite the functions of that new capital market in Burundi, in particular the valuation of negotiable financial securities, the economic barometer, transaction security and the contribution to the country’s economic growth.
At the end of that activity, the Deputy Managing Director (ADG) of BANCOBU, Mr. Sylvère Bankimbaga, who was named by the other shareholders of that market as the main shareholder of the Burundi stock exchange company, made know that the shareholders of that market will begin the procedures to implement that new market next week, specifying that they will exchange with investors in industries or companies so that they can imbibe the advantage of that market.