(Bloomberg) -- The Rwanda Stock Exchange is targeting to lure two initial public offerings this year, betting economic growth that’s averaged more than 6.6% in the past decade will spur companies to expand.
The RSE last had an IPO in 2021 when it listed the local unit of Africa’s biggest telecommunications company, MTN Group Ltd. That took the stocks on the board to 10, half of which are secondary listings. Market capitalization could climb by as much as 10% this year from about 3.8 trillion francs ($2.7 billion), paced by the new listings, according to Chief Executive Officer Pierre Celestin Rwabukumba.
“We’ve been talking to a few good potential companies, hopefully they’ll come to fruition this year,” he said in an interview. “We are expecting to have more instruments coming to the market for sure.”
The International Monetary Fund forecasts the East African economy to expand 6.5% this year, boosted by investment into key infrastructure such as a new $2 billion airport, hydropower facilities and inland ports on Lake Kivu.
The bourse helped the government and companies raise 271 billion francs selling bonds last year. The RSE also plans to introduce Islamic finance products and real estate investment trusts, the CEO said.
The Rwanda Stock Exchange All Share Index gained 3.6% last year, its second straight year of gains.
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