CMA CEO optimistic about market growth

Rwanda's Capital Markets Authority (CMA) has been developing strategies to deepen capital markets, promote savings, and drive economic development in the country. In a recent interview on CNBC Africa, Thapelo Tsheole, the CEO of CMA, discussed the progress and challenges faced by Rwanda's capital markets. Tsheole highlighted the growth of the equity market, with 10 listed companies and a market capitalization of $3 billion. The bond market has also shown growth, with 81 bonds issued, totaling close to $1.5 billion. Additionally, collective investment schemes in Rwanda have reached a total size of $62 million, indicating a growing interest in different asset classes. The CMA has recently approved listing rules for Real Estate Investment Trusts (REITs) and Exchange-Traded Funds (ETFs), expanding the range of assets available in the country's capital markets. Tsheole emphasized that the government's move to list state-owned enterprises (SOEs) on the Rwanda Stock Exchange is a deliberate step to develop the capital markets and offer investment opportunities in the economy. By diversifying the industries represented on the stock exchange, the listing of SOEs contributes to the overall growth and deepening of Rwanda's capital markets. To ensure transparency and mitigate fiscal risks associated with SOEs, the CMA regulates companies' compliance with international best practices through a comprehensive listing framework. Despite market concentration in certain sectors like banking, breweries, and telecom, Tsheole sees this as an opportunity for new entrants to invest in underserved areas and diversify the market. The CMA's regulations offer a level playing field for all market participants, regardless of their size or sector dominance. When compared to other regional markets in the East African Community (EAC), Rwanda's capital markets remain competitive, with a strong GDP growth rate of over 7%. While currency fluctuations pose challenges, especially for foreign investors, domestic investors can benefit from increased dividends and solid returns in local currency. Tsheole believes that Rwanda's sustained economic growth and positive outlook will help mitigate the impact of a global economic downturn on the country's capital markets. Looking ahead, Tsheole sees promising prospects for regional integration within the EAC, which includes eight countries with a total population of 300 million. Collaborative efforts to enhance regional integration, including forums on capital markets, are expected to further drive growth and investment opportunities in Rwanda and the broader East African region.