Rwanda’s stock market gears up for more listings

Rwanda's stock market is showing resilience amidst challenges, with the Rwanda Stock Exchange CEO, Celestin Rwabukumba, expressing optimism about attracting new cross-listings. Despite the impact of the COVID-19 pandemic, the market has seen positive trends in various metrics, with turnovers showing an improvement. The equities market, however, has experienced a decline in turnovers but an increase in indices. The Rwanda share index is up by 2% with the all-share index slightly below 1%. Market capitalization is also slightly up, affected by the Rwanda Franc's depreciation against the dollar. Money raised in the primary market has shown a slight increase, especially in the fixed income segment. Rwabukumba highlighted the market's resilience post-pandemic, with economic activities showing signs of recovery. The Rwanda Stock Exchange CEO also discussed plans to increase the number of listed companies by working on new listings. While there have been a few listings in recent years, there are ongoing talks with companies looking to raise capital and potentially list on the exchange. The market is processing applications from around three companies, including those interested in issuing corporate debt and equity. The Rwanda Stock Exchange aims to diversify its offerings and attract more companies to the market. Rwabukumba emphasized the importance of fostering a conducive environment for listings to spur more activity in the capital markets space. The CEO mentioned the need for more significant listings to impact the market cap significantly, citing examples of past major listings like MTN and Bank of Kigali. While the market awaits larger listings, efforts are being made to encourage private equity and venture capital deals to boost market activity. Addressing investors, Rwabukumba highlighted Rwanda's resilient economy, growing at over 5% despite challenges. The market represents diverse investment opportunities, from well-established companies to growth-oriented SMEs. With the economy showing signs of recovery across sectors like tourism and manufacturing, investors are encouraged to explore the Rwanda market. As the country looks ahead, the Rwanda Stock Exchange remains optimistic about attracting new listings and offering a robust investment landscape for both local and international investors.