The East African Securities Exchanges Association (EASEA) wants to increase the number of investors participating in the region's capital markets to 50 million by 2030, which officials said would deepen financial inclusion and unlock more funding for economic growth. The target, announced during the association's 36th meeting in Kigali, would represent a tenfold increase from the current five million investors participating across the East African Community (EAC). Paul Bwiso, the Chairperson of EASEA, said the strategy aims to expand access to capital markets by introducing new investment products, leveraging technology and strengthening collaboration among regional exchanges and regulators. ALSO READ: RSE targets banks, insurers in push for more listings “We believe the target is ambitious but achievable,” Bwiso said. “With a potential market of about 180 million people across East Africa, we are targeting at least 30 per cent participation in the capital markets through products that are accessible to a wider range of investors.” He added that the association had established dedicated technical committees to oversee implementation of the strategy, including workstreams focusing on product development, technology, investor awareness, post-trade infrastructure and data dissemination. Among the products expected to support the growth are exchange-traded funds (ETFs), thematic bonds such as green and infrastructure bonds, and collective investment schemes designed to attract both retail and institutional investors. ALSO READ: Africa’s first continental credit rating agency set to be launched in October The association plans to strengthen the Capital Markets Infrastructure (CMI) project, allowing investors to view holdings across multiple East African exchanges through a single investment account. The initiative is also expected to simplify cross-border investment and expand access to a broader range of listed securities. “We are also exploring ways to shorten settlement timelines to make it faster and easier for people to invest in companies and government bonds across East Africa and integrate payment systems with banks and mobile money platforms to make it easier for investors to buy and sell securities across borders,” Bwiso said. The association also wants to intensify investor education campaigns and jointly promote East African capital markets to international investors. ALSO READ: How new multicurrency market could boost access to foreign capital Bwiso said EASEA plans to organise investment roadshows, including in the Middle East next year, to attract more foreign investment into the region's frontier markets. Officials said achieving the target will also require closer cooperation with the East African Securities Regulatory Authorities (EASRA) to harmonise regulations governing cross-border investments. The current regulatory environment requires companies seeking cross-listings to comply with separate approval processes in different jurisdictions, creating additional costs and administrative hurdles. “We want a situation where a company approved in one East African market can access another market through a simplified process. The reforms will also allow investors to trade securities across the region more seamlessly while enabling shares to move freely between central securities depositories.” Peter Nalitolela, the Vice Chairperson of EASEA, said partnerships with banks and mobile network operators will be critical to expanding investor participation. He noted that Tanzania has nearly doubled its investor base in recent years through digital innovation and integration with mobile financial services. Nalitolela said the association also plans to build on the recently launched East Africa Index and develop more exchange-traded funds linked to regional securities. “We are also exploring ways to tokenise real assets such as infrastructure projects, allowing investors to participate in financing economic development through capital markets,” Nalitolela said. ALSO READ: African credit rating agency could correct global bias, experts say Pierre-Célestin Rwabukumba, the Chief Executive Officer of the Rwanda Stock Exchange (RSE), said expanding the region's investor base would require more than regulatory reforms. He pointed to the need for new investment products, stronger market infrastructure and closer collaboration among East African exchanges. “While some of the world's most developed capital markets have market capitalisation exceeding the size of their economies,” said Rwabukumba, “most East African markets remain below 50 per cent of GDP, highlighting the need to deepen participation and mobilise more long-term capital across the region.” Rwabukumba also said the Rwanda Stock Exchange is preparing to step up efforts to attract international investors as the market matures. “Having spent the past 15 years building a domestic investor base, the exchange now plans to organise investment roadshows across East Africa, Europe, the United States and other markets to showcase investment opportunities in Rwanda,” he said. The strategy will target the Rwandan diaspora as well as institutional and retail investors abroad, supported by an expanding range of investment products, including initial public offerings (IPOs), exchange-traded funds (ETFs) and Islamic finance instruments. He added that the initiative will be undertaken in collaboration with institutions responsible for promoting investment and Rwanda's ambitions to position itself as an international financial centre. More listings planned Jesse Kagoma, the Chief Executive Officer of the Central Depository and Settlement Corporation (CDSC) Kenya, said the Nairobi Securities Exchange is targeting an additional 40 listings over the next five years. He also called for more regional companies operating across East Africa to cross-list on multiple exchanges to improve liquidity and broaden investment opportunities. “Kenya is introducing a three-channel investor onboarding system that will allow people to open investment accounts through brokers, the depository or mobile phones, subject to Know Your Customer (KYC) requirements,” he said. “The Kenyan market is also considering a hybrid settlement model that combines the current T+3 settlement cycle with faster settlement options for selected transactions, while monitoring global trends towards shorter settlement periods,” he said. Officials expressed confidence that deeper regional integration, technological innovation and harmonised regulations would position capital markets to play a larger role in financing East Africa's economic development by 2030.
