The Rwanda Stock Exchange (RSE) is projecting a stronger performance in 2026 as it steps up efforts to expand investment products and tap into long-term domestic capital, particularly pension funds, in a bid to deepen the country’s capital markets.
RSE chief executive Pierre Celestin Rwabukumba said the exchange was optimistic about the year ahead, citing plans to diversify offerings and attract new categories of investors at a time when African exchanges are increasingly seeking to mobilise local savings to support economic growth.
“The outlook for 2026 is positive,” Rwabukumba said in an interview with CNBC Africa, pointing to growing interest in Rwanda’s capital markets and reforms aimed at strengthening market participation.
The RSE, one of the smaller but fast-developing exchanges in East Africa, has been working to broaden its product range beyond traditional equities and bonds. Authorities and market operators see product diversification as key to boosting liquidity and reducing reliance on a narrow investor base.
A central focus of the exchange’s strategy is the pension funds sector, which holds significant pools of long-term capital across the region. Pension assets in East Africa are estimated to run into trillions of shillings, but only a limited share is currently invested in local equity markets.
Rwabukumba said the RSE is exploring ways to position itself as an attractive investment destination for pension funds, following similar discussions taking place at other African exchanges.
“We are looking at structures and products that can meet the needs of pension funds, which typically seek long-term, stable returns,” he said, adding that unlocking even a fraction of pension capital could significantly boost market depth and activity.
Across Africa, exchanges have been pushing to draw in institutional investors as foreign participation becomes more volatile amid global uncertainty and shifting risk sentiment. Pension funds are seen as particularly important because of their long-term investment horizon and ability to provide stable liquidity.
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The RSE has also been exploring new investment instruments, including collective investment schemes, exchange-traded products and other market innovations designed to appeal to both institutional and retail investors.
Rwanda’s capital market has grown steadily over the past decade, supported by regulatory reforms, increased government bond issuance and efforts to encourage listings by state-owned and private companies. However, trading volumes remain relatively modest compared with larger regional peers such as Kenya, Nigeria and South Africa.
Market participants say attracting more listings will be critical to sustaining growth. While Rwanda has made progress in improving its business environment, convincing companies to list remains a challenge across much of Africa, where firms often prefer private financing or bank lending.
Rwabukumba said the exchange is continuing to engage with potential issuers and policymakers to demonstrate the benefits of listing, including access to capital, improved governance and greater visibility.
The push for a stronger 2026 comes against a backdrop of cautious optimism for African markets, as inflation pressures ease in some countries and central banks begin to signal a potential shift toward more accommodative monetary policy.
In Rwanda, macroeconomic stability has supported investor confidence, though risks remain from global economic uncertainty, commodity price fluctuations and regional geopolitical tensions.
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Analysts say the success of the RSE’s strategy will depend not only on new products, but also on regulatory alignment, investor education and continued improvements in market infrastructure.
Efforts to integrate African capital markets through cross-listings and regional trading platforms could also play a role in boosting activity, allowing smaller exchanges such as Rwanda’s to tap into a wider pool of investors.
As exchanges across the continent compete for capital, the RSE’s focus on pension funds and product innovation reflects a broader shift toward building resilient, domestically anchored markets less dependent on short-term foreign flows.
“For us, the goal is sustainable growth,” Rwabukumba said. “By expanding our product offering and engaging long-term investors, we believe the exchange can play a bigger role in financing Rwanda’s development.”
With reforms ongoing and regional peers pursuing similar strategies, 2026 is shaping up as a key test year for Rwanda’s ambitions to strengthen its capital market and position itself as an emerging financial hub in East Africa.
