Mahwi Grain Millers CEO discusses RSE listing, plans for future

Rwanda Stock Exchange saw a new listing this week, bringing hopes of increased activity at the bourse. Mahwi Grain Millers PLC made a significant mark by successfully issuing a Rwf5 billion bond, a pivotal milestone for Rwanda's capital markets. To gain further insights into this groundbreaking achievement, CNBC Africa's Eric Shaka sat down with Jean Claude Uwizeyemungu, the CEO of Mahwi Grain Millers. The conversation shed light on the company's strategic decision to tap into the capital market and the implications of this move on their future growth trajectory. In the interview, Uwizeyemungu emphasized the primary drivers behind the company's choice to explore the stock market for funding. He underscored the pivotal role of growth as a key factor in this decision-making process. While acknowledging the company's existing relationship with banks, Uwizeyemungu highlighted the necessity of accessing alternative funding sources to fuel expansion aspirations. He emphasized that the capital market presented an unparalleled opportunity to raise substantial funds that might be challenging to secure through traditional banking channels. Moreover, Uwizeyemungu delved into the second compelling reason for opting for a listing on the Rwanda Stock Exchange, which centered around enhancing corporate governance practices. Unlike the stringent assessment criteria employed by banks for loan approvals, the capital market places a premium on robust governance frameworks. By engaging with advisors and undergoing a rigorous approval process spanning two years, Mahwi Grain Millers significantly bolstered its corporate governance structures, underscoring its commitment to transparency and compliance. The discussion also touched upon the intricacies of the corporate bond issuance by Mahwi Grain Millers. Uwizeyemungu elucidated on the dual tranche structure adopted by the company, with a total borrowing capacity of 5 billion Rwandan francs spread across two phases. The first tranche of 3 billion Rwandan francs will be followed by the second tranche of 2 billion Rwandan francs, aligning with the company's strategic imperatives. Highlighting the investor sentiments towards the bond issuance, Uwizeyemungu noted the positive reception driven by the competitive interest rate of 15% per annum offered by the company. This attractive proposition played a pivotal role in enticing investors, coupled with the meticulous scrutiny of the company's financials and operations by potential stakeholders. Uwizeyemungu expressed confidence that this successful issuance would set a precedent for other small and medium enterprises (SMEs) seeking to access public funding through the capital market. Furthermore, Uwizeyemungu shed light on the utilization of the raised capital, outlining that the initial 3 billion Rwandan francs would be allocated towards maize aggregation to bolster the company's stock reserves. The subsequent 2 billion Rwandan francs will be earmarked for business expansion initiatives, particularly in the realm of animal feed production, signifying Mahwi Grain Millers' strategic diversification plans. Looking ahead, Uwizeyemungu shared the company's vision for market expansion and export ventures. With ambitions to tap into regional and international markets, Mahwi Grain Millers has already initiated export trials to neighboring countries such as the Democratic Republic of Congo and Europe, targeting diaspora consumers. The CEO expressed optimism in scaling up their export volumes with the newfound capital infusion, underlining the company's commitment to driving growth and seizing opportunities in the global marketplace. In conclusion, Mahwi Grain Millers PLC's successful bond issuance marks a significant milestone in Rwanda's financial landscape, exemplifying the growing potential and dynamism of the country's capital markets. With a strategic focus on growth, governance enhancement, and future expansion, the company sets a compelling precedent for SMEs navigating the evolving terrain of fundraising and market expansion.