UPDATE 2-Rwanda to list first firm on stock market in May

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By Arthur Asiimwe

KIGALI, March 26 (Reuters) - Rwanda will offload its 10 percent stake in insurance firm Sonarwa in May, the first company to be listed on its stock exchange, the country's finance minister said on Wednesday.

"Sonarwa has already finalised preparations to list 10 percent government shares on the stock market," Finance Minister James Musoni told reporters. "Listing of these equity shares should commence in May."

He did not give details of the amount the government hoped to raise, how many shares would be floated or at what price.

Musoni said the government would list four other companies on the bourse this year -- an undisclosed stake in Finabank, a 30 percent stake in brewer Bralirwa, 10 percent in mobile operator MTN Rwanda, a unit of South Africa's MTN (MTNJ.J), and 19 percent in Banque Commerciale du Rwanda (BCR).

The stock exchange, which was launched in January, already trades bonds.

"For every company in which the government owns less than 30 percent shares, we will be selling off these shares through the stock market," Musoni said.

Rwanda's stock exchange has signed a memorandum of understanding with stock markets in Kenya, Uganda and Tanzania to allow citizens of these countries, which belong to the East African Community, to trade in Rwanda's securities market.

Companies in the tiny central African country hope the stock market will help them raise long-term capital. They have previously relied on expensive commercial bank loans.

Rwanda also plans to partly offload stakes in state-owned companies to boost the over-the-counter exchange.

The government is keen to grow Rwanda's economy and has invited foreign investors to develop key sectors such as information technology, agriculture, tourism, manufacturing and finance.

(Writing by Helen Nyambura-Mwaura; editing by Will Waterman and Sue Thomas) (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/ )