Rwanda: Parliament discusses draft law on warehousing receipt system in Rwanda

Kigali, Rwanda (PANA) - Rwanda's Parliament on Monday started considering a draft law that would regulate warehouse receipt system as this East African nation seeks to formalize it as a new way for financing agriculture through a commodities exchange.

It is expected that the proposed financing mechanism, intended to boost investment in Rwanda, will be guided by the rules of commodities exchange under the supervision of the  Central Bank of Rwanda and the Capital Market.

Commenting on the move, the vice chair of the parliamentary committee on national budget and patrimony, Annonciata Mukarugwiza, explained that a warehouse receipt may be used as a trading or financing instrument for farmers and traders in Rwanda.

"The purpose of this law is to establish a legal framework regulating the warehouse receipt system in Rwanda," she said.

Through adoption of the law, the Rwandan Government wants to promote the practice of long term loans from commercial banks to the agricultural sector, according to Finance and Economic Planning minister Claver Gatete.

-0- PANA TWA/AR 25Sept2017

25 septembre 2017 17:12:41

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