The Rwanda Stock Exchange (RSE) and Mauritius-based AFRINEX Exchange have signed a Memorandum of Understanding aimed at expanding cross-border listings, investment opportunities and cooperation between the two capital markets.
The agreement was signed and exchanged at the RSE offices in Kigali on Monday, August 24, by RSE Chief Executive Officer Pierre-Célestin Rwabukumba and AFRINEX Limited Chief Executive Officer Thapelo Tsheole. Senior officials from both exchanges attended the ceremony.
The MoU establishes a framework for cooperation in strengthening financial-market infrastructure, promoting cross-listings and dual listings, encouraging cross-border investor participation, sharing knowledge and jointly developing new financial products across African markets.
For qualifying Rwandan companies, the partnership could provide another route to increase their visibility beyond the domestic market and reach a wider pool of long-term investors.
Investors could also gain access to a broader selection of opportunities as the two exchanges work towards developing a more connected African capital market.
“Our role as an exchange is ultimately to connect ambition with capital,” Rwabukumba said.
He explained that the partnership would create another bridge between Rwandan businesses and international investors while giving investors access to opportunities in different markets.
Rwabukumba said stronger connections between companies seeking capital and potential investors could contribute to business expansion, employment creation and the financing of Rwanda’s wider development priorities.
The two exchanges also intend to reduce barriers facing businesses seeking growth capital and investors looking for credible investment opportunities.
Their cooperation could strengthen investment flows between Rwanda and international markets while raising the visibility of Rwanda’s capital market among investors in India and other parts of Asia.
Tsheole said the agreement was expected to “facilitate more cross-listings, joint listings and investments across the two markets,” in addition to promoting the exchange of information and professional expertise.
Rwanda Stock Exchange Limited was incorporated on October 7, 2005, to conduct stock-market operations. It has since become a central part of Rwanda’s capital market, mobilising domestic and international investment to support sustainable economic growth.
The RSE currently has 10 listed companies. Five are domestic businesses, while the other five are companies cross-listed from Kenya and South Africa.
It also operates a separate fixed-income board containing 96 government treasury bonds and 10 corporate bonds.
AFRINEX is a Mauritius-based international securities exchange focused on African markets. Securities listed on the exchange have a combined market capitalisation exceeding $12.6 billion.
The exchange was established as an initiative of the Government of Mauritius, with support from the Government of India and technology provided by BSE Technologies. It offers platforms through which issuers and investors can list, trade and raise capital across different asset classes.
AFRINEX Clearing House Limited, a subsidiary of the exchange, provides depository, clearing and settlement services.
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