African markets

The Luxembourg Stock Exchange and the Rwanda Stock Exchange sign a memorandum of understanding

At a special Ring the Bell ceremony held in Luxembourg earlier today, attended by Rwanda’s Ambassador to Belgium and Luxembourg, His Excellency Ambassador Sebashongore, the Luxembourg Stock Exchange (LuxSE) and the Rwanda Stock Exchange (RSE) came together to celebrate the signing of a Memorandum of Understanding (MoU) between the two institutions.

The MoU aims to establish long-term cooperation between the two stock exchanges and help build bridges between the financial services industries in Luxembourg and Rwanda, with a particular focus on the development of sustainable finance in the country. African.

Bridging the gap between Luxembourg and Rwanda

Along with the objective of contributing to the order of financial markets through capacity building and skills development within the Kigali International Financial Center in Rwanda, the MoU will also facilitate joint work on market developments. and new products, including a possible future dual listing system between the two institutions.

“It is an honor to sign this MoU with the Rwanda Stock Exchange and to welcome its representatives to LuxSE. Stock exchanges have a crucial role to play in facilitating global cooperation when it comes to developing sustainable finance and international capital markets more generally. We look forward to working with the Rwanda Stock Exchange and continuing our mission of making sustainable finance truly global,” commented Mr. Arnaud Delestienne, Head of International Capital Markets and Executive Committee Member of LuxSE.

Create inclusive and sustainable capital markets

Having first opened its doors in January 2011, RSE is an exchange in the East African region with high ambitions for the development of Rwanda’s capital markets and its future financial prospects.

In his speech, the CEO of the Rwanda Stock Exchange, Mr. Pierre Célestin Rwabukumba reaffirmed the importance of this agreement for sustainable finance by stating that “today’s official signing with LuxSE demonstrates the commitment and unfailing support of our stock exchange for the sustainable development agenda led by our governments. The choice of LuxSE is no coincidence as it was the first exchange to introduce a green financial instruments platform, making it the ideal place for anyone in emerging or frontier markets who wants to cooperate and progress. rapidly in sustainable finance. We look forward to building a more resilient market, especially as everyone emerges from the COVID-19 pandemic and its aftermath.

Increased cooperation

LuxSE’s focus on sustainability through its UN-awarded sustainable finance platform, the Luxembourg Green Exchange (LGX), has led the exchange to cooperate with stock exchanges and other financial institutions in emerging markets. to foster sustainable finance around the world. Rwanda has launched several initiatives aimed at increasing awareness of climate change within and beyond its borders. It was the first African country to ban single-use plastic in 2019 and created Africa’s largest green fund, the National Environment Fund – FONERWA in 2012, to finance its ambitious carbon neutrality plans. and climate resilience by 2050. .

The memorandum of understanding between the two stock exchanges reflects the increased cooperation between Luxembourg and Rwanda. In October 2021, the Luxembourg Minister of Economy and Development, Cooperation and Humanitarian Affairs, Franz Fayot, and the Rwandan Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana, signed a memorandum of understanding on the development of a financial center in Kigali, with a particular focus on capacity building, sustainable finance as well as the establishment of a fintech ecosystem and an impact investment market.