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Rwandan bourse seeks to attract 4 new companies in 2021
There has been minimal movement on the Rwanda Stock Exchange in the first month of the year in what was expected to be a rebound period for the bourse, so is there a plan to attract more traders to the bourse? CNBC Africa spoke to the CEO of RSE, Celestin Rwabukumba for more.
Tue, 26 Jan 2021 10:35:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The RSE is focusing on promoting SME participation and new listings in 2021 to enhance market activity.
- Efforts are being made to address liquidity issues through the introduction of market making and increase investor awareness through public education initiatives.
- Anticipated listings such as MTN Rwanda and merger and acquisition activities are expected to boost liquidity and market confidence.
The Rwanda Stock Exchange (RSE) is gearing up to attract more traders and investors in 2021 after a slow start to the year. Celestin Rwabukumba, the CEO of RSE, outlined the strategic initiatives that the exchange is undertaking to enhance liquidity and increase market activity in an exclusive interview with CNBC Africa. Despite the challenges posed by the ongoing pandemic and economic uncertainties, the RSE remains optimistic about its growth prospects for the year ahead.
Rwabukumba highlighted the key focus areas for the RSE in 2021. The exchange is actively working on promoting small and medium enterprise (SME) participation through its investment campaign program. Additionally, the RSE is aiming to attract new listings to the market, with expectations of a few companies going public this year. One major project in the pipeline is the full automation and linkage of the RSE to the regional capital market infrastructure, which is anticipated to further enhance market efficiency.
In response to the sluggish trading activity observed in January, Rwabukumba explained that it is a typical trend for markets to experience lower activity during the first month of the year. However, external factors such as the pandemic and economic downturn have added to the uncertainties in the market, impacting investor confidence. Despite these challenges, Rwabukumba remains confident in the resilience of the RSE and its ability to navigate through the current market conditions.
To improve trading and attract more investors, Rwabukumba emphasized the importance of increasing the variety of products available on the market, including equities and bonds. The introduction of market making is also part of the plan to address liquidity issues and enhance market efficiency. Additionally, the RSE is focusing on public education and marketing initiatives to raise awareness about the investment opportunities offered by the exchange.
As the RSE looks to ramp up its efforts to attract investors, Rwabukumba highlighted the significance of collaborations with fund managers, foreign direct investment (FDI) partners, and other stakeholders in the financial sector. Roadshows and promotional activities will be key in showcasing the potential of the Rwandan market to both domestic and international investors.
One of the anticipated listings on the RSE this year is the MTN Rwanda listing, following the acquisition of Crystal Telecom. This move is expected to bring more liquidity and investor confidence to the market. Additionally, the merger and acquisition activities, such as KCB Bank Rwanda acquiring BPR at last mile, are set to stimulate market movements and enhance the overall market dynamics.
Looking ahead, the RSE is poised to capitalize on the upcoming developments in the Rwandan economy and position itself as a key player in the regional financial landscape. As the market continues to evolve and adapt to changing circumstances, Rwabukumba reaffirmed the RSE's commitment to fostering a vibrant and dynamic trading environment for investors. With strategic initiatives in place and a focus on enhancing investor awareness and market efficiency, the RSE aims to attract more traders and boost trading activity in the months to come.
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