Rwanda’s stock market turnover surpassed Rwf100 billion-mark for the first time, reaching Rwf129 billion in 2024, an increase of 126 per cent from the previous year, according to Rwanda Stock Exchange (RSE). The Rwf129 billion market turnover simply implies the total value of shares traded on the RSE during the year under review. The benchmark index for local counters – Rwanda Share Index – rose by 15.9 per cent, while the All Rwanda Share Index increased by 3.6 per cent. The indices are a measure of price movements used to gauge the stock market performance in an economy. ALSO READ: Capital markets: Rwanda’s trading activities dip by 22.7 per cent RSE indicated that the total market capitalisation – total market value of all listed companies' shares – by the end of 2024 in equities amounted to $2.7 billion and $1.5 billion in debt securities. Funds raised amounted to Rwf271 billion from 10 listed companies and 41 outstanding bonds. The total funds that circulated on the market amounted to Rwf400 billion. The stock market was also marked by the issuance and listing of three products from private issuers in the last quarter of the year, which raised Rwf51 billion. These include the first-ever green bond by Prime Energy worth Rwf9.5 billion with a seven-year maturity, a second listing of the first tranche of Rwf3 billion corporate bond by Mahwi Grain Millers paying 15 per cent per annum, and the second tranche of Sustainability-Linked Bond by theDevelopment Bank of Rwanda (BRD) worth Rwf33.5 billion with a seven-year maturity. ALSO READ: Rwanda bourse to allow trading of new asset classes Pierre-Célestin Rwabukumba, RSE Chief Executive Officer, said that there was growth in participation of both institutional and retail investors which increased by 37.5 per cent to 95,672 investors dominated by domestic investors by 95.7 per cent. However, he acknowledged that activities on secondary market are still low compared to advanced markets, despite the improvement made over the years. “There is also a limited number of products and little diversification for investors. For instance, initially aiming for an average of 2 new listings per year, the exchange has realized closer to one per year, aligning with trends observed in other African stock exchanges,” he said. Rwabukumba blamed the slow growth on limited financial literacy, low savings rates, and reluctance from companies to go public, adding that the government's privatisation policy through capital markets and probably a deliberate policy to compel public utility companies or companies of a certain size to go public could offer a promising avenue for expansion, while efforts to enhance local professional skills and financial services aim to support a growing pipeline of potential issuers. Going forward, Rwabukumba said: “RSE plans to launch cutting-edge digital platforms to streamline trading, enhance transparency, and improve user experience.” “New offerings such as the introduction of a green exchange window, multi-currency-denominated instruments, market-making and Islamic finance or Sharia-compliant platforms will also enhance product offerings,” he added. In 2024, the local bourse also introduced new instruments including exchange-traded funds (ETFs) and real estate investment trusts (REITs) which will provide investors with a low-cost, diversified, and flexible investment option, broadening access to the stock market, offering attractive returns and contributing to urban development. It also launched Environment, Sustainability, Governance (ESG) Disclosure Guidance that will foster the integration of sustainability compliance among listed and non-listed companies in the Rwandan market.
