Small and medium enterprises (SMEs) are being urged to explore capital markets as an alternative to traditional bank loans, as efforts intensify to expand access to long-term financing. Despite growing support initiatives such as the Rwanda Stock Exchange (RSE) Investment Clinic, many businesses remain unprepared to fully take advantage of these opportunities. Through the Investment Clinic, the RSE is working with firms to strengthen corporate governance, improve financial reporting, and align operations with investor expectations. ALSO READ: Rwanda Stock Exchange launches multicurrency securities trading The programme also links investment-ready businesses with potential financiers, helping to build confidence in Rwanda’s capital markets. Industry experts point to a gradual shift in the financial ecosystem, with businesses increasingly moving away from short-term, high-interest bank loans toward longer-term financing instruments such as equity listings and corporate bonds. This transition is driven by efforts to expand access to sustainable finance and reduce overreliance on commercial bank lending. Officials say the shift is not only about raising capital, but also about building stronger, more transparent, and competitive companies capable of sustaining long-term growth. “There are options for companies to list shares, issue corporate bonds, or raise equity through the stock exchange. These are alternative financing avenues that can support sustainable growth,” said Tony Kajangwe, Permanent Secretary at the Ministry of Trade and Industry (MINICOM). ALSO READ: Rwanda Stock Exchange rallies for inclusivity in financial blocks He added that participation in capital markets goes beyond financing, noting that listing can enhance transparency, strengthen governance, and boost corporate visibility. However, many SMEs still face structural barriers that limit their readiness for capital markets, including informal business structures, incomplete financial records, and weak governance systems, gaps that initiatives like the Investment Clinic aim to address. Hensse Iyv, a capital market consultant, said accessing capital markets requires more than ambition, it demands strong institutional readiness. “Accessing capital markets is not just a transaction, but a long-term process that connects businesses to sustainable funding and growth opportunities,” she said. She noted that many SMEs underestimate the level of preparation required, particularly in areas such as audited financial statements, compliance frameworks, and corporate governance standards. Technology entrepreneur Muhizi Deexon, Chief Executive Officer of iGitree, said the Investment Clinic is helping bridge this knowledge gap for emerging companies. Beyond facilitating access to funding, he said, the programme equips entrepreneurs with the skills needed to manage and sustain capital effectively. “The clinic helps young companies understand not only how to access funding, but also how to use it efficiently to sustain and grow their businesses,” he said. Legal experts also stress the importance of preparing SMEs for the regulatory demands that come with capital market participation. Leatitia Teta Nzungize, an associate at Trinity Lawyers, said legal advisory support under the Investment Clinic is tailored to each business’s structure and sector. “Our role is to identify gaps and guide companies through the process. When young firms access large amounts of capital early, they can become overwhelmed, so we ensure they understand and comply with legal requirements as they grow,” she said. Stakeholders say the success of this shift will depend on how quickly SMEs can build the governance, financial discipline, and compliance systems needed to compete in a more sophisticated financing environment.
