RSE CEO: Investors are seeking safe haven in Rwanda’s bond market

The bonds market on the Rwanda Stock Exchange has been a point of attraction for investors in the first half of the year, with significant trading volumes being recorded. Over 100 million francs worth of bonds were exchanged in a single day, followed by another 500 million worth of bonds being traded the next day. CNBC Africa had the opportunity to speak with Celestin Rwabukumba, the CEO of the Rwanda Stock Exchange, to gain insights into the current trends and developments within the market. Rwabukumba shed light on the consistent investor interest in the bond market, especially from institutional investors, highlighting that the activity has been robust compared to the previous year. While the volume of bonds traded this year is slightly lower than last year, there is a noticeable increase in retail investors participating, particularly on the fixed income side. Rwabukumba attributed this trend to individuals increasingly looking at savings as a form of financial planning and seeking secure investment avenues amidst uncertain times. The CEO emphasized the importance of both issuance and investor behavior in shaping the market dynamics, with banks also showing interest due to their liquidity position. Corporate bonds are also gaining traction, with companies like Enagetical participating in the market. Rwabukumba confirmed the upcoming listing of Enagetical's bonds on the exchange, signaling a potential avenue for more private companies to access funding through the capital markets. The corporate bond market is seen as a more cost-effective alternative for companies to raise capital compared to traditional bank loans, with branding and ease of access playing vital roles in attracting investors. Additionally, the Rwanda Stock Exchange has been conducting an SME clinic to help companies, especially small and medium enterprises, become investor-ready and potentially list on the exchange. The CEO highlighted the diverse sectors represented among the participating companies and emphasized the importance of good corporate governance in preparing businesses for successful fundraising activities. As the platform progresses, more companies are expected to leverage the clinic to enhance their investment readiness and explore opportunities for growth through the capital markets.