Rwanda’s capital markets progress – bill in Parliament, IPO coming “this year”

High on the agenda of Rwanda’s Parliamentary Standing Committee on Economy is the bill to regulate the capital market, which has been in Parliament for more than a year, reports the local The New Times newspaper (
Once the law is made effective, the Capital Market Advisory Council (, which is currently developing and managing the Rwanda Over-the-Counter market, will become the official regulator, called the Capital Market Authority. The OTC market will be the Rwanda Stock Exchange (RSE).
The Director General of Communication and Outreach in Parliament, Augustin Habimana, reportedly told The New Times that the Committee has already discussed the bill several times, and that it will hold further debate before submitting it to the plenary session for approval.
“What usually happens is that initially the bill comes to the parliament, is reviewed and then it’s sent to the relevant Committee. So far, what I can tell you is that the Committee has met several government representatives, and several ideas have been exchanged in the process,” he said.
CMAC reportedly says that 7 members will operate in the Rwanda OTC market and are grouped in 3 categories of membership: stockbrokers, dealers and sponsors. Stockbrokers buy and sell on their own account and on behalf of the investing public, dealers trade with their own funds and sponsors provide advisory services to companies looking to raise capital.
A decree by the Prime Minister established the CMAC in March 2007 to help set up and regulate the transitional process as the Government put a stock market in place. The market dual-lists Kenya Commercial Bank shares, 4 treasury bonds of 2- and 3- years duration (the latest, a 2-year bond launched on 17 August, offers a yield of 9.5%) and a 2017 corporate bond issued by Rwanda Commercial Bank (BCR).
The initial public offer for brewer and soft drinks manufacturer and distributor Brasseries et Limonaderies du Rwanda ( is still expected this year. Vincent Munyeshyaka the Chairman of the Capital Market Privatization Committee, the body that oversees and coordinates the process of divesture through the capital markets, told The New Times: “The IPO will take place before the end of this year but the delay was caused by the government time table that is the budget process and elections,” in particular the recent Presidential elections.
The valuation continues, although the price is expected to be good. BRALIRWA is the only brewer and estimated to have 95% market share, as well as the Coca Cola franchise. It is owned 70% by international Heineken Group and 30% by the Rwandan Government. The Government will sell 25% to the public and 5% to Heineken.
Government has said that advisors will be a consortium of MBEA Kampala, MBEA Security Services Kigali and Renaissance Capital of Nairobi as the lead transaction advisor. Lead sponsoring broker is Dyer & Blair Investment of Kenya and African Alliance, also Kenyan, is co-sponsoring broker. Kenya’s Central Depository and Settlement Corporation ( said recently it will provide registrar services.
Future Government share sales are to include 2 more of the country’s biggest companies: MTN Rwanda and Sonarwa, an insurance company.

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