Celestin Rwabukumba on what to expect in 2023 for Rwanda's stock market

The Rwanda stock market has emerged as one of the top bourses in Sub-Saharan Africa, showcasing resilience and positive returns for shareholders amidst economic challenges. Celestin Rwabukumba, the CEO of the Rwanda Stock Exchange, recently joined CNBC Africa to reflect on the market's performance in 2022 and share expectations for the upcoming year. The past year saw a notable uptrend in the equities market, with indices increasing by approximately 7%. Rwabukumba highlighted the exceptional performance of companies like Bank of Kigali and MTN Rwanda as key drivers of this growth. Trading activity saw a substantial rise of nearly 200%, indicating a favorable environment in the equities market compared to the previous year. As investors eye opportunities in 2023, Rwabukumba emphasized the importance of profitability and growth trends when considering investment decisions. While equities markets continue to perform well, fixed income assets have also maintained consistency, providing stability amidst global economic uncertainties. Despite challenges such as inflation and geopolitical tensions, Rwabukumba remains optimistic about Rwanda's economic resilience and advises vigilance in the face of evolving market dynamics. The CEO shed light on the strong performance of the fixed income market, attributing it to increased momentum, trading activities, and growing investor confidence. The synergy between the equities and fixed income markets has been pivotal in driving overall market growth, with record turnovers and volumes demonstrating robust investor interest. Looking ahead, Rwabukumba outlined efforts to attract new listings and enhance market liquidity. Initiatives such as the Investment Clinic project aim to prepare companies for investment readiness, fostering a conducive environment for capital raising and listings. The successful completion of the first cohort has set the stage for additional companies to enter the market, with ongoing efforts to support further listings in 2023. Additionally, technological advancements and sustainability initiatives, including green finance frameworks, are expected to broaden the market's appeal and facilitate international partnerships. Rwanda Stock Exchange's involvement in regional initiatives, such as the African Securities Exchanges Association, underscores its commitment to capacity building and cross-border collaboration. The imminent launch of the capital market infrastructure linking regional stock exchanges promises enhanced market connectivity and efficiency. Rwabukumba also touched upon Rwanda's Eurobond performance, lauding its consistent growth compared to regional counterparts. Discussing the country's aspirations to issue a green bond, he highlighted ongoing efforts to develop sustainable finance frameworks for future product offerings. As Rwanda aims to establish itself as an international financial hub, Rwabukumba affirmed RSE's alignment with this vision through strategic initiatives, such as capacity building, guideline development, and project sourcing. With a focus on regional inclusion and market automation, the outlook for the Rwanda stock market in 2023 remains optimistic, with a strong emphasis on education, innovation, and sustainable growth.