Financial Markets
Senior 6 · Entrepreneurship
Financial Markets
Lesson 2 of 4
30 min
Every day that someone in Rwanda drinks a Bralirwa soda, sends money with MTN MoMo or banks with BK, part of the profit belongs to the many people and institutions that own their shares. They can own them because those companies sold shares to the public and listed them on the Rwanda Stock Exchange. This lesson shows how Rwanda's capital market is organised, who regulates it, and why it is worth using, both for savers and for businesses that need long-term money.
Definition
Capital market: the market in which long-term funds are raised and traded through securities such as shares and bonds. Securities exchange (stock exchange): an organised, regulated marketplace where listed securities are bought and sold through licensed brokers.
Example: the Rwanda Stock Exchange (RSE).
Definition
Listing: admission of a company's securities to trading on an exchange, after it meets the exchange's rules on size, disclosure and governance. Central Securities Depository (CSD): the electronic register that records who owns each listed security and settles trades.
Example: when an investor buys MTN Rwanda shares, the CSD moves them into that investor's CSD account.
Definition
Capital Market Authority (CMA): Rwanda's regulator of the capital market, of collective investment schemes, of the commodities exchange and of warehouse receipts. It licenses market players, approves offers to the public and protects investors.
| Institution | Role (from CMA and RSE, 2026) |
|---|---|
| Capital Market Authority (CMA) | Develops and regulates the market; issues, suspends and withdraws licences; protects investors from fraud and manipulation; promotes public awareness. First set up by Law N° 11 of 2011; now governed by a 2021 law establishing the Capital Market Authority. |
| Rwanda Stock Exchange (RSE) | Rwanda's national securities exchange: lists and trades shares, corporate bonds and government securities. Incorporated on 7 October 2005 and officially launched on 31 January 2011. |
| Licensed brokers | The only firms allowed to buy and sell on the RSE for investors; listed by CMA |
| Central Securities Depository | Records ownership and settles trades, two business days after the trade (T+2) |
| Issuers | Companies and the government that raise money by selling securities |
| Investors | Individuals, companies, pension funds and investment funds, local and foreign |
On 30 September 2026 the RSE listed ten companies. Some, such as Kenya Commercial Bank, are based in other EAC countries.
| Company | RSE code | Closing price, 30 September 2026 (Frw) |
|---|---|---|
| BRALIRWA PLC | BLR | 516 |
| Bank of Kigali Group PLC | BOK | 671 |
| MTN Rwanda PLC | MTNR | 192 |
| I&M Bank Rwanda PLC | IMR | 105 |
| CIMERWA PLC | CMR | 165 |
| RH Bophelo PLC | RHB | 526 |
| Kenya Commercial Bank PLC | KCB | 500 |
| Equity Bank Group PLC | EQTY | 900 |
| Nation Media Group PLC | NMG | 1,200 |
| Uchumi Supermarket PLC | USL | 104 |
On that day only MTN Rwanda traded: 44,000 shares worth Frw 8,448,000. Most RSE shares trade on only some days, which is why investors should treat them as long-term holdings. The market also lists government Treasury bonds and corporate bonds, such as the Development Bank of Rwanda's third sustainability-linked bond, listed in 2026 after investors subscribed 126.2% of the amount sought (RSE, 2026).
| For the investor | For the company or government | For the economy |
|---|---|---|
| Returns from dividends, interest and rising prices | Large, long-term funds without collateral | Savings turned into productive investment |
| Liquidity: securities can be sold through a broker | Equity need not be repaid, unlike a loan | Less dependence on foreign loans and aid |
| Diversification across companies and bonds | Visibility and credibility with customers and lenders | Wider ownership of big companies by citizens |
| Ownership and a vote at general meetings | A lower corporate income tax rate after listing | Better governance from public disclosure |
| Lower taxes on listed securities | Can raise more money later through new issues | Funds for infrastructure and green projects |
Important
The tax advantages, as set by Law N° 027 of 2022 on income tax (RRA)
Worked example 1: the listing incentive
A Rwandan manufacturer expects taxable profit of Frw 2,000,000,000 a year. It plans to list on the RSE and sell 40% of its shares to the public. Find the yearly tax saving and the saving over five years, if profit stays the same.
Tax without listing: francs.
Tax after listing: francs.
Saving: Frw 160,000,000 a year, or francs over five years. The owners give up 40% of the company, so they must weigh this saving, and the new capital raised, against sharing future profits and control.
Worked example 2: an investor's dividend
A resident investor is due a gross dividend of Frw 200,000. Compare the net amount from a listed company and from an unlisted one.
Listed: tax ; net Frw 190,000.
Unlisted: tax ; net Frw 170,000.
The listed share pays Frw 20,000 more in the investor's hand, and a later sale of the listed share is free of capital gains tax.
Warning
Benefits are not guarantees. Share prices fall as well as rise, dividends can be cut, and on a small market a seller may have to wait for a buyer. Listing also brings costs and duties for the company: published accounts, independent directors and continuous disclosure.
CNBC Africa, "Invest Rwanda: The Rise of Rwanda's Capital Markets". Listen for the reasons given for listing on the RSE, and compare them with the benefits table above.
Practice
Sources and credits
Written by Ganzaa: the tables, the worked examples and the practice items. The manufacturer and the investor are illustrative (2026).
This lesson adapts CC BY-SA material and is shared under CC BY-SA 4.0.
