Liquid, diverse and well-regulated local capital markets are an essential source of local-currency financing for the government, financial sector participants, and for end users e.g. small businesses. Better developed domestic capital markets can allocate capital more efficiently and allow for better risk-sharing, while also providing an alternative source of funding to complement bank financing, with a view to providing better pricing and longer tenors. Capital markets greatly contribute to mobilizing domestic savings for investment in a variety of key sectors such as housing, industry and SMEs as well as creating jobs and supporting economic development. Since inception in 2007, the Rwanda capital market has developed an enabling regulatory framework that meets basic requirements for issuance and trading of securities. The market, however, requires further development of conditions for deeper market development to enable more issuance of securities; increase capacity of market players, intermediaries, investors and issuers; and increase trading and liquidity of the secondary market for both government and non-government securities. The Rwanda Capital Market Development (CMD) project is aimed at facilitating access to long term local currency financing for key sectors. Project activities will focus on increasing secondary market liquidity in the government debt market, increasing supply and issuance of non-government bonds and development of a professional investor base. The project will also assess potential to use alternative investment vehicles and instruments to mobilize long-term financing for strategic sectors such as SMEs and housing.