Rwanda Stock Exchange (RSE) recently launched a Multicurrency Denominated Securities Market Segment (MDS), allowing investors to issue and trade securities in multiple currencies for the first time. The move is expected to broaden investment opportunities and help businesses access much-needed foreign currency, according RSE said. ALSO READ: Rwanda Stock Exchange launches multicurrency securities trading RSE CEO Pierre-Célestin Rwabukumba told The New Times that the rationale behind the initiative is to encourage more people in the capital market. “Rwanda’s balance of payments is currently negative, meaning we import more than we export. Many of these imports, such as construction materials, are for investment purposes that support long-term economic growth,” he explained. ALSO READ: What does it take to increase Rwandans involvement in capital markets? Rwabukumba noted that foreign currency mainly comes from the diaspora, exports, donors, and foreign investments. Capital markets, he said, are crucial in mobilising funds across different sectors. “Until now, our laws have recognised only the Rwandan franc as legal tender. But businesses genuinely need access to dollars and other hard currencies,” he said. “Previously, the only way to raise foreign currency was through banks. Our capital market has only supported instruments denominated in francs, such as local bonds and shares,” he added. ALSO READ: Capital market launches grassroots investment campaign With the introduction of multicurrency trading, Rwabukumba said the capital market will now allow businesses to raise foreign currency and give qualified investors the option to invest in either Rwandan francs or foreign currencies. “This opens up the economy to a broader pool of resources and enhances efficiency in financing,” he added. He also highlighted Rwanda’s growing reputation as an international financial centre. “Without innovations like multicurrency trading, we would be less competitive. This benefits local businesses and international companies that use Rwanda as a platform to raise capital for ventures both within and beyond the country,” Rwabukumba said. The new segment complements the wider financial ecosystem, including the Kigali Innovation City and the Kigali International Financial Centre (KIFC), by enabling long-term financing in hard currency and providing investors with more options. According to RSE officials, it also aligns with the recently introduced green exchange, which focuses on sustainability-linked instruments. Who will benefit? Rwabukumba explained that not everyone will be allowed to use the system. “This is designed to encourage foreign investors, Rwandans in the diaspora, and businesses in Rwanda that earn in foreign currencies. For example, companies in sectors like tea, which already earn in foreign currencies, will be allowed to invest through this platform. The system is regulated to prevent misuse and ensure legal compliance. Looking ahead, “we will conduct awareness campaigns to help people understand the system, ensure regulations are followed, and encourage continued active engagement,” he added. Learning from other countries Rwanda looked at similar markets in Africa and beyond before introducing the platform. “Mauritius is strong in multicurrency trading, but we also studied countries like Jamaica and Luxembourg. Jamaica, a small country with a population almost similar to ours, has twice been the top-performing capital market in the world in the last five years,” Rwabukumba said. He added that similar products in these countries have helped small and medium enterprises (SMEs) develop by providing access to finance in foreign currencies. “If we manage this well, we will be able to finance more projects locally while attracting international investors.” Olivier Muneza, a market analyst and CEO of Mo Capital, said the new segment will particularly benefit businesses that rely on foreign currencies, such as those importing materials. “Investors have been asking for this option. It is timely and, because it will be regulated, the risks of misuse are minimal,” he weighed in. Muneza also noted that offering investment opportunities in foreign currencies will attract more investors to Rwanda’s market and encourage broader participation.
