SEE ALSO :Rwandan bank ends NSE listing drought“Access to capital has been a problem to many small and medium enterprises in expanding their business. This has been hampered a sector currently playing a great role in job creation and revenue generation to the economy,” said Eddy Njoroge. “The establishment of GEMS market will pave way for the listing of small and medium sized enterprises on the exchange, which is a major driver of our country’s economy,” he said. He said that the GEMS is supported by a wide community of experienced advisors, ranging from brokers to accountants, lawyers and the fundamental nominated advisors who will assist companies to list on GEMS and to comply with good corporate governance and global best practises. Capital Needed The CEO of the NSE, Peter Mwangi, said the alternative platform would provide an opportunity for the firms participating in the natural resources and mining sectors raise needed capital.
SEE ALSO :Tough year as firms warn of profit slump“The establishment of the market will become a fundamental contributor to the stability of the overall financial system of the country. We believe it will provide an opportunity to those in the resource and mining sector to raise capital and also comply with the 35 per cent local equity component,” he said. “These firms require huge flows of capital to finance their capital intensive operations.” Following the development, the NSE plans to give train directors on corporate governance to the directors.