Rwanda’s IPO space off to a promising start - CNBC Africa

Rwanda’s IPO space off to a promising start

East Africa

by Trust Matsilele 0

Rwandan Stock Exchange is optimistic over IPOs but President Kagame's power retention drive could drive down prospects. PHOTO: Wikipedia

Rwanda is off to a promising year with three new initial public offerings (IPOs) expected in the finance, logistics and transport sectors.

The positive outlook comes barely a month after the East African country saw 45.5 million dollars worth of trade recorded at the stock exchange in the last quarter of 2015.

Analysts say potential investors are closely watching Rwanda to see if it remains equally resilient regardless of external factors.

Celestin Rwabukumba, chief executive of the Rwanda Stock Exchange, said the country’s bourse was optimistic regarding the future.

“For this year we are planning to have few listings coming into the market.  We are focusing a lot on the demand side with specific attention on retail investors,” added Rwabukumba.

“We are increasingly getting more and more new investors; in 2015 we had a surge of new investors of 19.2 per cent,” he added.


He also added that the country was working to keeping the momentum.

“We are to keep building on this momentum to entice new investment so that we don’t face challenges in supply and demand sides.”

However, the East African country could face political challenges after President Paul Kagame indicated that he is intending to contest in the next election.

Until last December, Rwanda’s constitution called for a two term limits for the presidency.

 This ended when the ruling party initiated the referendum process that saw the country revising constitutional amendments allowing an extra five years on top of two term limits.