A promising improvement in Rwanda’s stock exchange regional integration

Feb 05, 2014

The recent regional integration of Rwanda’s stock exchange should promote its development and simplify the access to capital of larger companies.

The recent regional integration of Rwanda’s stock exchange should promote its development and simplify access to capital of larger companies. However, the market is still facing challenges which will have to be addressed if it is to play a significant role in development.


Rwanda’s stock exchange central depository was recently interlinked with other regional depositories, a move which is due to boost activity. The need for such a development was clear: an increasing number of companies are cross-listing, a phenomenon already impacting three out of five Rwandan listed companies.

This development will make it easier to transfer shares across the Rwandan, Kenyan, Ugandan and Tanzanian stock exchange markets and transactions should now take less than two hours, compared to over three months previously.

However, this positive change will not on its own
resolve the issue of low trading volumes on the Rwandan stock market, and the reluctance of companies to list on it. The interest of Rwandans in investing in shares also needs to increase. Most investors still do not understand how the market operates.

Capital Markets Authority officials have been talking for some time of the need to launch a massive awareness campaign. Plans have also been made for local authorities to start issuing Municipal bonds, which should increase knowledge of bond market operations. However, progress remains slow for far.ADNFCR-2976-ID-801690132-ADNFCR