Rwandan market update

Rwanda's capital markets have demonstrated resilience despite facing various challenges in recent times. The equities and fixed incomes front have remained active, with treasury bills being oversubscribed. Gideon Sang, Senior Investment Research Analyst at BK Capital, highlighted the key trends and counters to watch in the market for the upcoming week. In the fixed income market, T-bills were oversubscribed, although the subscription rate had decreased compared to the previous week. This was attributed to the reopening of a 15-year bond. Yields experienced a slight uptick, but the yield curve shifted downwards following the central bank's decision to maintain the rate at 1.5%. The forex market reflected significant pressure on the Rwandan franc, with a depreciation of 1.2% year-to-date in 2025. This was fueled by increased demand for the US dollar due to limited supply within the Rwandan market and high demand for imports. Sang emphasized the need for interventions to support the franc, including boosting the agricultural and tourism sectors, attracting foreign direct investment, and implementing effective monetary policies. Regional tensions may impact trade, requiring collaboration with neighboring countries to drive exports. Despite challenges, the equities market has shown positive performance, with counters like INM Rwanda, Bank of Kigali, and Bariloa leading the way. INM Rwanda saw an 18% gain year-to-date, propelled by investor interest and dividend payouts. Bariloa also performed well, increasing by 50% in 2024. The overall outlook for the equities market remains positive, supported by easing monetary policies that are likely to attract investors from fixed income securities to equities. The market's resilience in the face of uncertainties and challenges underscores its potential for growth and stability.