Rwanda Stock Market Goes Digital, Projects 20% Growth Despite COVID-19 Threat

Pierre Celestin Rwabukumba, CEO Rwanda Stock Exchange

Rwanda Stock Exchange (RSE) has said that during this coronavirus pandemic, its trading activities will remain online but with a projection of increased investments and trade volumes.

“We have taken precautionary measures to avoid physical contact. Orders are sent online by stock brokers and are processed without them coming to the Exchange,” said Pierre Celestin Rwabukumba, the CEO of RSE.

Rwabukumba noted that trading has continued without interruptions but investors and other clients with inquiries can send them electronically to email: info@rse.rw or by phone on a toll-free line 3537 or call +250 788 516 021.

Though the coronavirus turbulences are still a market marker to determine the future of the global and Rwandan economy, RSE said that local market projects a 20% increase in new investors joining the market that is on the demand and supply sides.

Rwabukumba is basing on the number of small and big companies that have shown the potentials to list on the bourse.

“So far the bourse has 20,800 active investment accounts. Those are people who invest without including those who come in indirectly and this year projects to add another 20% at least,” Rwabukumba said.

To sustain these projects, according to RSE, will depend on how faster the global supply chains are back to normal or near normal or progressively restored and how other counterparts respond worldwide.

It will also depend on the level of trade across countries and across sectors of the economy.

RSE said that at this time they shall keep monitoring what happens in the coming weeks. In the meantime, since March 14 when the first coronavirus case in Rwanda was confirmed, the market has remained stable compared to last year same period.

Rwanda closes quarter one (Q1) with slightly higher in traded volumes and the main all share index (ALSI) up by 10.7% and the RSI down by 1.2%.

RSE figures show that the market had a total turnover of Rwf25.42 billion traded in the secondary market and this year project an increase of at least 20% in trading volumes.

Subscription levels were quite good registering a level of 143%; 57% local investors and 43% foreign.

“The RSE issuance programs have also continued as expected on the fixed income side. For example mid-March, we concluded two issuances of a 3- year and a 7 year reopening of Treasury bonds (T-Bonds),” the RSE CEO said in an email.




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