Betting on Rwanda: Why the RSE could boom in 2024

Rwanda's economy is attracting investors' attention, particularly towards the Rwanda Stock Exchange (RSE), which is poised to become a powerhouse in 2024. The recent merger involving CIMERWA, overseen by Pierre Celestin Rwabukumba, the CEO of the Rwanda Stock Exchange Ltd, has sparked optimism in the market. National Cement, the acquirer of CIMERWA, has a track record of strategic acquisitions in the cement industry across the region, with a focus on boosting local economies. The acquisition of CIMERWA is expected to have a positive impact on Rwanda's economy and the stock exchange, attracting significant investor interest. In 2023, the RSE faced challenges in liquidity, similar to global equity markets, leading to a decrease in trading activities. Despite this, the underlying companies listed on the exchange performed well, with many recording substantial earnings and dividends. CIMERWA, along with others like Bank of Kigali, experienced significant growth, reflecting the overall strength of Rwanda's economy. The RSE also achieved a milestone with the first listing of a Sustainability Linked Bond by BRD, the Development Bank of Rwanda, signaling a shift towards sustainable investments. Looking ahead to 2024, the RSE anticipates continued growth and new listings, driven by initiatives like the Capital Market Investment Clinic that prepares companies for the investor market. The exchange also aims to introduce more green projects to attract environmentally conscious investors. Despite global uncertainties, Rwanda's credit markets are expected to remain resilient, supported by the country's stable economic outlook and government assurances of sustained growth. Rwanda's position as one of the best-performing economies in East Africa presents opportunities for regional trading collaborations. The RSE, as a member of the East Africa Securities Exchange Association (EASA), is working towards linking regional markets to create an integrated trading platform. The association also plans to connect with the wider African markets through initiatives like the East Africa Linkage Project (EALP), fostering cross-border trade and investment. In conclusion, the Rwanda Stock Exchange is well-positioned for growth in 2024, bolstered by recent developments and a positive economic outlook. With a focus on sustainability, resilience, and regional integration, the RSE aims to attract more investors and drive market expansion. As Pierre Celestin Rwabukumba emphasized, the exchange remains optimistic about the upcoming year, projecting continued growth and stability amid global economic challenges.