RSE, LSE sign new MoU to build long term cooperation

In a special Ring the Bell ceremony held in Luxembourg, the Luxembourg Stock Exchange (LuxSE) and Rwanda Stock Exchange (RSE) celebrated the signing of a Memorandum of Understanding (MoU) between the two institutions. Celestin Rwabukumba, the CEO of the RSE, shed light on the details of the MoU in an interview with CNBC Africa. The MoU between RSE and Luxembourg Stock Exchange focuses on sustainability finance, capacity building, and product development. Rwanda aims to leverage the expertise of Luxembourg, known for its advanced green and sustainable finance markets, to expand its product offerings and attract new investors globally. Sustainable finance has become a buzzword, with investors increasingly looking beyond financial returns to consider the environmental and social impact of their investments. Rwabukumba highlighted the importance of green projects and sustainable practices in driving market growth and sustainability. He mentioned Rwanda's aspiration to become an international financial center, with a focus on green and sustainable projects in the region. By fostering collaboration with established financial centers like Luxembourg, Rwabukumba believes RSE can bridge the gap between markets and provide opportunities for companies to raise finance in Rwanda. The MoU signifies a step towards deeper cooperation and mutual growth for both stock exchanges. While discussing Rwanda's stock market performance, Rwabukumba acknowledged the challenges faced by the young and small market, especially amidst the pandemic. He emphasized the need for public education, a stronger fund management industry, and increased market liquidity to enhance investor confidence and market growth. The RSE has been working on building local investor confidence and attracting listings, with a focus on sustainability and market development. Rwabukumba highlighted the growing interest in the bonds market, driven by the perceived safety and predictability of fixed income investments. He mentioned efforts to deepen the fund management industry to further support market growth. Despite the impact of the pandemic, Rwabukumba noted a slight increase in trading activity in the equity market in the first quarter of 2022, with continued interest in fixed income investments. RSE has conducted SME clinics to prepare small and medium enterprises for the stock market, aiming to create a pipeline of companies ready for investment. While acknowledging the potential of separate stock markets for SMEs, Rwabukumba emphasized the importance of preparing companies to attract investment and contribute positively to the market. Looking ahead, Rwabukumba hinted at upcoming projects and potential listings as RSE continues to focus on market development and expansion. With nine months left in the year, investors can expect new opportunities and listings from the Rwanda Stock Exchange as it seeks to grow and attract more investors.