Year in Review: How Rwanda’s bourse performed amid COVID-19 crisis

Rwanda's stock exchange has shown resilience in the face of the COVID-19 pandemic, with the CEO of the Rwanda Stock Exchange, Celestin Rwabukumba, highlighting some key insights into the market's performance in 2020. Despite the global economic uncertainties brought on by the pandemic, Rwanda's stock market has seen positive growth and activity throughout the year. Rwabukumba revealed that the market witnessed an increase in turnover by more than 200 percent, reaching 55.7 billion Rwanda francs compared to 17.4 billion the year before. Notably, the secondary market activity surged by 275 percent since the onset of COVID-19 in Rwanda. While the Rwanda share index for domestic companies experienced a slight decline of 10 percent, the overall market performance remained strong. Rwabukumba attributed the market's success to the listing of companies like Smerua and I1, as well as the increased primary market activity, including a successful rights issue from a bank. Rwabukumba acknowledged that not everything was smooth sailing, as the domestic share index faced challenges, but he remained optimistic about the market's future prospects. Additionally, he addressed concerns around the delayed reaction of potential investors to major developments in the market, such as the acquisition announcements by major banks. He emphasized that the Rwanda stock market is built on stability rather than speculation, and liquidity levels may not match those of advanced markets. Despite some setbacks, Rwabukumba expressed confidence in the market's ability to rebound and stabilize in the coming year. Looking ahead to 2021, the Rwanda Stock Exchange has exciting plans in store. The exchange aims to introduce new products and listings, expand its capital market investment clinic, and explore market-making opportunities to enhance liquidity. The implementation of automation is also on the agenda, with efforts to streamline trading processes and improve efficiency. As the world anticipates the rollout of vaccines and a potential economic recovery in the coming year, Rwanda's stock exchange is gearing up for continued growth and resilience in the face of uncertainty. Rwabukumba remains optimistic about the market's future and is focused on driving innovation and expansion to attract more investors and further develop Rwanda's capital market.