Burundi : setting up capital market for firms this year

Jean Ciza burundi’s central bank governor. Photo: RR

NEWSROOM (ADV) – Burundi plans to establish a security exchange before the end of this year for companies to raise funds after a slowdown in commercial bank lending, a senior central bank official said.

Arsène Mutoni, the head of the central bank’s Capital Market Regulatory Department said that there was several pension funds and insurance firms that were ready to back companies which will seek capital on the market.

“We have many companies which want to widen their shareholder base in order to buy new materials and increase production,” Mutoni said.

Mutoni said the central bank had set up a team back in 2009 to try to establish the financial market and that they expected it to start late in November or early December.

Local social security firms such as the state-owned National Social Security Institute and the National Pension and Professional Risks Office, are interested, he said. The central bank had initiated talks with U.S-based funds interested in investing in developing countries.

© Bur-csa – A.H / Oumaima Mourtada – African Daily Voice (ADV)