RSE expects more cross listings in the second half of 2021

The Rwanda Stock Exchange (RSE) has shown resilience and stability in its performance in the first half of 2021, with the Rwanda Stock Exchange All Share Index rising more than 3 percentage points compared to the same period last year. This increase has largely been attributed to the bond markets. RSE CEO, Celestin Rwabukumba, discussed the market's performance in an exclusive interview with CNBC Africa. Rwabukumba highlighted that the market has performed well despite the challenging economic conditions. Trading activities have seen an uptick of about 34%, indicating a level of stabilization in the market. Additionally, the equities market has shown an increase in volumes and turnover compared to last year. Rwabukumba noted that the market has seen an improvement in activities due to factors such as the stabilization of the economy and the rollout of vaccinations. The market has witnessed listings and other activities that point towards a positive trend. One notable aspect has been the performance of the Iron Limbeng counter which has garnered investor interest. Rwabukumba explained that Bank of Kigali's cross-listing into the Nairobi market has also influenced market activity. The listing of MTN Rwanda has further diversified the market. Looking ahead, Rwabukumba mentioned the possibility of more corporate bonds being listed, with expectations of increased activity in the SME market segment. Despite challenges such as the central bank's directive on dividend payouts, Rwabukumba expressed confidence in the market's solid performance. He emphasized the importance of the economy's overall performance in boosting investor confidence. Rwabukumba also touched on plans to enhance investor confidence, stating that it hinges on the country's economic management and the market's liquidity. The performance of the RSE, according to Rwabukumba, reflects the resilience of the Rwandan economy. Addressing concerns of capital flight, Rwabukumba noted that the RSE has not experienced significant outflows of international investors. Plans for automation and collaboration with other stock exchanges in the region are still on track, with a target set for Q3. The successful launch of the first privately issued bond, the energy hotel bond, has garnered positive reviews. Rwabukumba stressed the need to create awareness and confidence in such instruments to attract more private sector players. He outlined the process of setting up a private bond issuance on the RSE, emphasizing the importance of governance and financial management. Looking ahead to the second half of the year, Rwabukumba mentioned plans to support the first cohort of MSMEs and onboard a second cohort. The role of the Capital Markets Authority in promoting Rwanda as a financial services hub was also highlighted. In conclusion, the RSE's performance in the first half of 2021 showcases resilience and stability amidst challenges. With strategic plans and a focus on investor confidence, the market looks poised for continued growth in the second half of the year.