An interview conducted by Nairobi Securities Exchange PLC in its Trading Bell with Pierre Celestin Rwabukumba, CEO of the Rwanda Stock Exchange and President of ASEA, highlighted the progress, challenges, and future direction of Africa’s capital markets, with a strong focus on growth, integration, and increasing participation.
Rwabukumba explained that African capital markets have made steady progress, with increased activity, product diversification, and the emergence of larger IPOs across different regions, although growth remains uneven and more development is still needed.
“Well, I think as markets we have met a lot of strides. Everyone is growing, though not at the same pace. We are seeing a revival of IPOs, including large ones that were unthinkable a decade ago outside South Africa. Across regions like West Africa, Nigeria, and Egypt, markets are improving, product offerings are expanding, and new instruments such as green bonds and Islamic finance are emerging. However, savings levels still lag behind economic growth, and while frameworks are improving and markets are aligning, there is still more to be done.”
On integration, he noted that while initiatives like AELP are advancing, Africa’s markets are still fragmented, with ongoing efforts at national and regional levels and challenges such as currency differences and cross-border settlement systems.
“Well, yes, we are making progress, but Africa is not yet fully integrated. Integration is happening gradually, starting at domestic and regional levels before expanding continentally. With AELP, phase one is complete and phase two is nearing completion, with more exchanges set to join soon. While the infrastructure is largely in place, challenges remain, including limited market activity, settlement systems, and lack of currency harmonization. However, efforts are ongoing, and awareness and participation are growing.”
Focusing on Rwanda, he emphasizes that public education, digital outreach, and policy support are key to increasing participation, alongside efforts to develop both investors and issuers in the market.
“For Rwanda, the main initiative is public education, supported by digital platforms and outreach programs. The goal is to educate both investors and potential issuers while also engaging policymakers. With a young population, digital channels are critical. At the same time, legal frameworks are being improved and innovation supported through initiatives like sandboxes. Ultimately, participation depends on both awareness and availability of products.”
He also highlights that expanding product offerings and strengthening technology are essential to attract investors, especially younger ones, with plans underway to introduce new financial instruments and improve accessibility.
“We are working to diversify beyond equities and bonds by introducing products such as ETFs, REITs, and Sharia-compliant instruments. Technology is largely in place, and further improvements are underway to make access easier through mobile platforms. However, product availability remains key, as investors need attractive opportunities to participate in the market.”
Addressing low retail participation, he points to competition from alternatives like gaming, limited product flow, and the need for better incentives and policies, stressing that consistent opportunities and trust are crucial to attracting more investors.
“There is strong interest in making money, but many people turn to alternatives like gaming instead of investing. Participation is also limited by the lack of frequent new products and investment opportunities. To attract more investors, markets need a steady flow of products, supportive policies, and clear value propositions. Broader participation will help create more wealth across society, not just for a few individuals.”
He concludes by confirming the next ASEA meeting.
“The next ASEA event will take place between November and December in Mozambique.”
Gabriel UZABAKIRIHO / KIGALI TIMES