WIXLIB

14RSE ANNUAL REPORTWealth a way of life2018Department of the Faculty of Commerce at Makerere University,Kampala (‘MUK’), Uganda. Andrew has, over the years, served onnumerous other Boards of organizations across Africa. He currentlyserves as a Director on the Board of aBi Finance Limited, a Ugandancompany that provides financing for agribusiness development; and,on the Board of G4S Secure Solutions (Uganda) Limited, a leadingglobal international security solutions group, specializing in secureoutsourcing of business processes, including manned guarding,courier logistics, cash solutions and security systems.Andrew also served as Alternate Director on the Board of CAL MerchantBank Limited (now Cal Bank Limited) in Accra, Ghana; Alternate Directoron the Board of the National Merchant Bank of Zimbabwe Limited(‘NMBZ’) in Harare, Zimbabwe; and, Alternate Director on the Board ofSecurities Discount Company Limited (‘SDC’) in Accra, Ghana. He hasalso served as: Ag. Chairman of the Uganda Securities Exchange (USE);Governing Council Member/Director of the USE, where he served asChairman of the Council Finance & Projects Committee; Director onthe Board of the National Social Security Fund (‘NSSF’) of Uganda,where he served as Chairman of the Board Finance & InvestmentsCommittee; He has also served as Founding Chairman of the UgandaStock Brokers Association (‘USBA’); and, Chairman of UgandaRugby Union, the governing body of the Game of Rugby in Uganda.In June 1997, Andrew, at the invitation of the United States Congress/House of Representatives Subcommittee on Africa of the HouseCommittee on International Relations, provided written and oraltestimony regarding “Africa’s Emerging Capital Markets”. Andrew wasthe first recipient of the “Kikonyogo Capital Markets Award” (‘KCMA’)2003, presented by Capital Markets Authority of Uganda (‘CMAUganda’) in recognition of his exemplary contribution towards thedevelopment of the Ugandan capital market. The Award was namedafter the Late Governor of the Central Bank of Uganda (‘BOU’), Mr.

RSE ANNUAL REPORTWealth a way of life201815Charles N. Kikonyogo, in recognition of his exemplary support anddedication to the development of the capital markets industry inUganda. In 2007, Andrew received the Runner-up KCMA.Andrew was nominated one of the “2009 Distinguished WhartonAlumni (contributing to Africa)” by the Wharton African StudentsAssociation (‘WASA’), of which Mr. Owiny was the Founding President;and the Wharton Club of Africa (‘WCA’), a congregation of WhartonAlumni from across the African Continent, both organizationsassociated with The Wharton School of the University of Pennsylvaniain Philadelphia, Pennsylvania, USA.Andrew served as a Judge on the Panel of Judges for the annualRwanda Development Board (‘RDB’) Business Excellence Awards(Investor of the Year & Export of the Year Awards) in 2010, 2011 and2012, and served as Chairman of the Judges Panel & Joint Masterof Ceremony (‘MC’) in 2011. Andrew received his Master of BusinessAdministration degree in Finance & Accounting from the WhartonSchool of the University of Pennsylvania, and holds a Bachelor ofCommerce honours degree in Finance from Makerere University,Kampala (‘MUK’), Uganda.

16RSE ANNUAL REPORTWealth a way of life2018Innocent Idi KABANDA has served as amember of the Rwanda Stock ExchangeBoard of Directors since May 2015.Mr. Innocent IdiKABANDABoard MemberMr. Innocent joined RSSB in 2007 asinvestment analyst. Since 2015 he waspromoted as Portfolio Management DivisionManager of Rwanda Social Security Board(RSSB) after being successively Directorof Non Fixed Income Investments sinceApril 2013 and Director of Fixed IncomeInvestments since September 2011.The responsibilities of his position are tocarry out the analysis of the Fixed Income Investments (bank term deposits,Government securities, mortgage, commercial papers and loans) and nonfixed income investments (Real estates and Equity) to determine prudentinvestment reallocation opportunities to generate additional yield orminimize investment risk; follow up the global& macro-economic situationand prepare various analysis reports on regular basis.He serves on other Boards such as Eastern Province Investment Company(EPIC) as Vice chairman since January 2016, SONARWA Life since October2018; GOSHEN FINANCE ltd (banking services) since May 2017; SILOWAMUMedical Clinic since September 2018 and former Board member of SOYCOMOUNT MERU RWANDA Ltd (soy bean factory located at Kayonza District)from January 2016 to December 2017.An expert in Economics Policy Management graduate from a knownUniversity of Kinshasa sponsored by World Bank, Bachelor’s degree inManagement from University of Rwanda at Huye Campus and currentlypursuing Chartered Public Accountant course (CPA ) under sponsorship ofICPAR.

RSE ANNUAL REPORTWealth a way of life201817Mr. Pierre Celestin RWABUKUMBA, aRwandan national, is the current Chairmanof the East African Securities ExchangesAssociation (EASEA) and Chief ExecutiveOfficer of the Rwanda Stock Exchange Ltd.He was the Co- founder and Chairman ofKigali Cement Company, a private companythat produces, Markets and sells cement inRwanda and neighboring countries. He isalso a non-Executive Director in a numberof institutions in finance and businessMr. Pierre Celestindevelopment, hospitality and industry inRWABUKUMBARwanda and beyond. The list include theBoard MemberSecurities Industry Training Institute (SITIEast Africa) where is serves as Chairman, The Executive Committee of theAfrican Securities Exchanges Umbrella Organization (ASEA), The NewFaces New Voices – Rwanda and others. He is also involved in differentinvestment projects ranging from Real Estate, Poultry and Agro – processingto Energy.Mr. Rwabukumba started his career in financial services in New York Citymore than a decade ago after graduating from the University of Buffalo (UB),New York in the United States with a bachelor’s Degree in Economics. Heworked in different professional positions as a stock broker, in Complianceand Operations and Institutional Investors’ Sales before he joined the CentralBank of Rwanda in 2004 to help start the Capital Market DevelopmentProject in Rwanda. Mr. Rwabukumba is a seasoned negotiator as he hasbeen instrumental in different negotiations on regional integration of theEast African Community.He has served on different Capital Market Committees both at the nationaland the regional level; the latest being the High Level Task Force negotiatingthe EAC Monetary Union. He completed an international post GraduateAdvanced Management Program (AMP) for Executives at StrathmoreBusiness School.

181.RSE ANNUAL REPORTWealth a way of life2018BRIEF DESCRIPTION OF RWANDASTOCK EXCHANGEA Stock Exchange is an oganized and regulated financial marketwhere securities are bought and sold at prices governed by the forcesof demand and supply. Stock exchanges impose stringent rules,listing requirements, and statutory requirements that are binding onall listed and trading parties.Rwanda Stock Exchange Limited was incorporated on 7th October2005 with the objective of carrying out stock market operations. TheStock Exchange was demutualized from the start as it was registeredas a company limited by shares. The company was officially launchedon 31st January, 2011.RSE OWNERSHIP STRUCTUREThe ownership structure of Rwanda Stock Exchange is as follows:NoShareholdersOwnership (%)1Agaciro Development Fund.202Faida Securities Rwanda Ltd103African Alliance Rwanda Ltd.104CDH Capital Ltd105Baraka Capital Ltd.106MBEA Brokerage Services Rwanda Ltd107Dyer & Blair Rwanda Ltd.108RSSB109BRD810SONARWA General Insurances Company Ltd 111SORAS General Insurance Ltd.1

RSE ANNUAL REPORTWealth a way of life2018191.1 RSE BOARD COMPOSITION & REPRESENTATIONThe Rwanda Stock Exchange Board is comprised of 7 membersdistributed as follows: Government of Rwanda has one representative Members have three representatives Institutional investors have one representative Members of the public and/or professional bodies have onerepresentative Listed companies have one representative1.1.1 CORPORATE INFORMATIONDirectors12345678NamesDr. James NdahiroMr. Bob KarinaMs. Iza IrameMr. Andrew Otengo OwinyMs. Amina Umulisa RwakundaMr. Shehzad NoordallyMr. Innocent KabandaMr. Pierre Celestin RwabukumbaRoleChairmanVice ChairmanMemberMemberMemberMemberMemberSecretary

20RSE ANNUAL REPORTWealth a way of life2018Board SecretaryMr. Pierre Celestin RWABUKUMBAAvenue du CommerceP O Box 5337, Kigali- RWANDARegistered OfficeKCT Building 1st Floor,Avenue du Commerce,P. O. Box 5337 Kigali- RwandaBankersBank of KigaliPlot No.6112,Avenue de la PaixP.O. Box 175, Kigali, RwandaIndependent AuditorsABC CONSULTANTS LTD,2ND Floor, La Bonne AdresseBuilding,Republic Avenue,P O Box 1901,Kigali – Rwanda.Legal AdvisorK-Solutions and Partners12, KG 645 ST Urugwiro, KacyiruP.O Box 4062 Kigali, Rwanda

RSE ANNUAL REPORTWealth a way of life201821STATEMENT OF THE CHAIRMANIt is my pleasure to reportthat 2018 was a good year forRwanda Stock Exchange (RSE).As fundamentally our economymaintained a healthy growth of7.2% despite challenges acrossthe globe especially in subSaharan Africa due to exogenousfactorsaffectingeconomiesacross the globe. We have alsoseen some recovery this year inthe EAC economies registering5.9% growth from 5.2% in 2017.“We remain very positive about theopportunities to grow our Exchangeas we are well positioned tocapitalize on the ongoing economicreforms and development in thecountry through providing efficientcapital raising platform to supportgrowth.The positive domestic growth wasalso translated into the increasein activity especially in fixedincome securities at the primaryand the secondary market andprice stability in the equitiesmarket. These developmentsclearly makes our role as astock exchange becoming evenmore relevant. Given the factthat the RSE was establishedtofacilitateimplementationof the country’s economicreforms and encourage widerownership of public resources,collaboration and support fromthe Government and other keystakeholders continues to be key“

22RSE ANNUAL REPORTWealth a way of life2018towards supporting the country’s economic development. The RSEstrategy and Plans therefore, aim at positioning the RSE as the focusfor raising capital for private enterprises and to the Governmentdevelopment projects through providing the platform for mobilizingsavings for productive investments activities and creating investmentopportunities for investors.During 2018, RSE continued for the fourth year the implementationof its current 5 year strategic plan where efforts and resources weredirected towards a large scale campaign aimed at large corporatesand SMEs and launching of the Small and Medium Enterprises MarketSegment (SMEMS). This and combined efforts to sensitize retailinvestor market niche, increasing on efficiency levels and publicoutreach contributed to raising further the profile of the exchange.In the course of the year we increased our visibility on world stageby actively participating in different regional and internationalconferences and activities. The RSE actively participated in the 22ndASEA Conference and Annual General meeting in Lagos, Nigeria from25th – 27th November, 2018 which was graced by His Excellence, TheVice President of the Republic of Nigeria, Professor Yemi OsinbanjoThe RSE has also joined the Executive Committee of the Umbrellaorganization for the African exchanges (ASEA).I am also happy to note that this year we have continued our work withthe World Federation of Exchanges (WEF) as an associate memberand actively pursued our interactions and consultations with the UN’sSustainable Stock Exchanges initiative (SSE) through their workinggroups after joining in 2015. This initiative aims to provide an effectiveplatform for peer-to-peer dialogue among global exchanges. RSE hasjoined number 5 on the continent after Nigeria, Mauritius, Ivory Coastand the Nairobi Securities Exchanges and a few more Exchanges thathave joined this year.The Outlook is exciting, as all these efforts start to bear fruits i.e.increase activity, broaden the range of products, streamline theoperations and commercialize the RSE as an entity.

RSE ANNUAL REPORTWealth a way of life201823During this period we continued our efforts towards the automationof the exchange. The Market Capitalization at the close of 2018 wasat USD 3.35 billion slightly down from USD 3.47 billion at the end of2017 mainly due to price fluctuation.With regard to the fixed income securities, the government’squarterly bond issuance program continued with an average of 236.4subscription rate.This increased secondary trading activity in the fixed income securitiesto the tune of 91.11% and 4.47% in bonds turnover and number oftransactions, respectively compared to the same period in 2017.The recorded performance positively impacted the financialperformance during the year. The RSE internal income generatedincreased by 12.4% from Rwf 392.1 million in 2017 to Rwf 441.04million in 2018. We managed to stay within the projected performancedespite the fact that we operated in a volatile year mainly due toexogenous factors.On behalf of the Board of Directors, Management and the rest of themembers of staff at Rwanda Stock Exchange, I wish to acknowledgeand extend our appreciation to the continued support of theGovernment of Rwanda through the Ministry of Finance to the CMA.It is our sincere belief that the Government will continue supportingthe RSE for the foreseeable future.I am also grateful to all our development partners such as FinancialSector Development Plan (FSDP), Banque National Du Rwanda (BNR)and the Private Sector Federation (PSF) for their support in developingthe market. During the year under review we have officially launcheda campaign for Small and Medium Enterprises Market Segment at theRSE which targeted 300 SMEs among whch 100 were selected for thelistins forum and 12 of them signed up for further assement to explorethe capital market route to raise funding. We have also increased ourpresence up country and participated in road shows for the general

24RSE ANNUAL REPORTWealth a way of life2018public alongside the Central Bank, the Capital Market Authority andMINECOFIN to spur further retail investor participation. We believethrough these we will envisage to result into an appetite for Small &Medium Enterprises raising capital and list on the Exchange and seemore participation from the general public on the demand side as wecan already see positive impact now on the ground from the supplyside’s primary market activity and 11% average participation of theretail investors at least for the first time on the supply side buyinginto fixed income securities.Again in a special way I acknowledge with appreciation theoutstanding role played by all my colleagues (The Members of theBoard of Directors) for their continued contribution and commitmentto the development of the Exchange. The concerted efforts by theManagement and the Board should push even further the developmentagenda of the RSE in years to come.On behalf of the Board, I would like to also thank the RSE Managementand entire team of staff for their dedication and commitment inensuring that the Exchange meets its strategic objectives even duringchallenging moments.In the longer term, we remain very positive about the opportunitiesto grow our Exchange as we are well positioned to capitalize on theongoing economic reforms and development in the country throughproviding efficient capital raising platform to support growth.Dr. James NdahiroChairman

RSE ANNUAL REPORTWealth a way of life201825MANAGEMENTThe management of RSE during the year and to the date of this reportwas:1234NamesMr. Pierre CelestinRWABUKUMBAMs. IRIBAGIZA AliceMr. TWAGIRA RobertMr. MITALI DavidPositionsChief Executive OfficerHead of Administration and FinanceHead of IT and OperationsOperations Officer

26RSE ANNUAL REPORTWealth a way of life20181. MARKET PERFORMANCEa.Rwanda Shares Index (RSI)b. All Shares Index (ALSI)

RSE ANNUAL REPORTWealth a way of lifeC. Market participation by end of 2018201827

28RSE ANNUAL REPORTWealth a way of life2018D. Comparison turnover between 2017-2018RSE Listings forum 2018

RSE ANNUAL REPORTWealth a way of life2.ECONOMICS OUTLOOK2.1.Global Economic outlook201829According to IMF forecasts,the global economic performance wassteady with a n estimated 3.7% GDP growth from 3.8 % recorded in2017. Global growth is projected to decline to 3.5% in 2019 beforeslightly picking up to 3.6% in 2020.2.2. Emerging MarketsIn emerging markets and developing economies, growth is expectedto slow down to 4.5% in 2019.The Chinese economy grew by 6.6% in2018, the lowest growth for the last 28 years and is projected to growby 6.2% in 2019 amid intense trade dispute with the US , weakeningdomestic demand and alarming off balance-sheet borrowings bylocal governemnts.2.3. Sub Saharan Africa and EACIn Sub-Saharan Africa economies, growth is expected to pick upfrom 2.9% in 2018 to 3.5% in 2019 and 3.6% in 2020.However theseprojections are lower than initial projections as aresult of softening oilprices tha have caused downward revisions for Angola and Nigeria.In the East African Community (EAC), GDP growth is expected toremain strong from 5.3% in 2017, to 5.9% in 2018 and 6.3% in 20192.4.The Rwandan Economy outlookThe Rwandan economy performed well in 2018, recording an averagegrowth of 8.3% in the first three quarters of 2018 against 4.6% inthe same period of 2017.This growth resulted from good performancein agriculture sector (6.3%), service sector (8%) and industry sector(9.3%).

30RSE ANNUAL REPORTWealth a way of life2018The good performance of the Rwandan economy observed in the firstthree quarters of 2018 continued in 2018Q4 as evidenced by threadingindicators of economic activities, evolving towards surpassing theprojected annual growth of 7.2% by end 2018. The composite indexof economics activities (CIEA) increased in real terms by 13.1% in 2018Q4 from 16.5% recorded in the same period of 2017 and by 14.4% in2018 after 11.2% recorded in 2017.The good performance recorded in 2018 is reflected in the favorablebusiness developments as indicated by the total turnovers of industryand services sectors that increased by 16.7%, after 15.8% in 2017. Theservice sector was leading, with a share of 75.3% and a growth of18.5% while the industry sector grew by 11.5% from 12%.The service sector’s good performance resulted from an improvementin wholesale and retail trade ( 17.2%) as well as transport and storageservices ( 22.9%). As aforementioned, transport and storage serviceshave been mainly supported by air transportation on account ofbusiness expansion of Rwandair as well land transportation. Moreover,services sector was backed by good performance of hotels ( 27.1%),information and communication ( 6.7%), Banks ( 16.2%), and therecovery of real estates ( 27.9%)Headline inflation reached to 1.4% in 2018, from 4.9% in 2017 onaverage. This decline was mostly reflected in the decrease in foodinflation of to -1.4% in 2018 from 9.8% in 2017 as a result of goodagricultural production.

RSE ANNUAL REPORTWealth a way of life3.201831MARKET PERFORMANCEOn the Rwanda Stock Exchange (RSE), market activities went up in2018 compared to 2017 performance due to the increased trading infixed income.3.1. Primary MarketDuring the period under review, the government of Rwanda issued4 treasury bonds with maturity period ranging between 3-15years with a face value of FRW 55 billion and were subscribed at263%,293.4%,168.9% and 186% at coupon rates of 11.8% 12.5%,12.9% and11.5% respectively. In addition, 2 Government bonds were reopenedin june and September with a face value

4 Wealth a way of life ffifffifl To be a big contributor to the economic development and . Ltd and BK General Insurance. Ms.Amina Umulisa RWAKUNDA has been a Board Director of the Rwanda Stock Exchange (RSE) since 2012. . ('USBA'); and, Chairman of Uganda Rugby Union, the governing body of the Game of Rugby in Uganda. .