How to Buy Shares on the Rwanda Stock Exchange (RSE)

The Rwanda Stock Exchange (RSE) in Kigali is where shares in listed companies, as well as government and corporate bonds, are traded. It is supervised by the Capital Market Authority (CMA). Some of the region's best-known companies are listed, including several that are also listed on other East African exchanges. This guide explains how to buy shares on the Rwanda Stock Exchange, step by step, and what to know about the risks before you invest.

Shares and what they pay

A share is a small piece of ownership in a company. Shareholders earn dividends when the company pays out profits, and they may gain if the share price rises. They can also lose if the price falls. Over long periods, shares in good companies have tended to grow faster than savings accounts, but with ups and downs along the way, so they suit money you can leave invested for years.

How to start investing on the RSE

You buy and sell through a licensed broker, called a member of the exchange. The broker opens an account for you at the Central Securities Depository (CSD), where your shares and bonds are held electronically in your name. You will need your national ID or passport, your TIN and bank details. The CMA and RSE publish the list of licensed brokers, so confirm that yours is on it.

Placing an order

When you want to buy, you give your broker an order saying which shares, how many and the highest price you are willing to pay. This limit protects you if the price moves before your order is filled. Once the trade goes through, the shares appear in your CSD account. You pay the broker's commission and small exchange and regulatory fees on each trade, so buying in sensible amounts rather than many tiny purchases keeps costs down.

Selling works the same way: you tell your broker how many shares to sell and the lowest price you will accept. The money is paid into your bank account after the trade settles.

Bonds through the same account

The same CSD account also lets you buy Government of Rwanda Treasury bonds, which many investors combine with shares to balance risk. Bonds pay fixed interest twice a year and are less volatile than shares, so they can steady a portfolio.

Know the risks

The RSE is a young and relatively small market. Some shares trade infrequently, so it can take time to sell, especially in large amounts. Prices can also move sharply on news. That is why it is wise to invest only money you will not need soon, spread it across several holdings, and avoid borrowing to buy shares.

Read each company's annual report before investing. Look for steady profits, a track record of dividends and sensible borrowing. Be wary of anyone promising guaranteed returns from shares; no honest broker can.

Shares, unit trusts or both?

If picking individual companies seems difficult, a unit trust spreads your money across many investments and is run by professional managers. Rwanda's national investment trust offers funds that let you start with smaller amounts; see our guide to the RNIT Iterambere Fund and unit trusts. Many investors hold a unit trust for steady growth and a few individual shares they know well.

Getting your finances ready

Before buying shares, build an emergency fund in an accessible account, such as an Umurenge SACCO, and clear expensive debts. Then invest a regular amount and reinvest dividends to benefit from compounding. Our savings calculator shows how regular investing can grow, and our guide to Umurenge SACCOs and ibimina covers short-term savings.

Frequently asked questions

How do I buy shares in Rwanda?

Through a licensed broker, who opens a Central Securities Depository account in your name.

How to buy shares on the Rwanda Stock Exchange