23/03/2022

Stock Exchanges in Luxembourg and Rwanda take first important steps together


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

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

Bridging the gap between Luxembourg and Rwanda

Along with the aim of contributing to orderly financial markets through capacity building and skills development within Rwanda’s Kigali International Financial Centre, the MoU will also facilitate joint work on market developments and new products, including a possible future dual-listing scheme between the two institutions.

“It is an honour to sign this Memorandum of Understanding with 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 Rwanda Stock Exchange and continue our mission to make sustainable finance truly global,” commented Mr Arnaud Delestienne, Director of International Capital Markets and Member of the Executive Committee of LuxSE.
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The overarching goal of these efforts is to mobilise capital flows to meaningfully contribute to the United Nations Sustainable Development Goals (SDGs), and in particular to SDG 5, “Achieve Gender Equality and Empower all Women and Girls.”

Ms. Anita Bhatia, Assistant Secretary General and Deputy Executive Director of UN Women commented: “"Today's partnership really matters because we are bringing innovation to the area of gender equality. I am so pleased that we are going to be able to build on the long-standing partnership that we have with Luxembourg to really push the envelope and to try to make substantive and visible change in the lives of women by unleashing the power of finance."

Increased cooperation 

LuxSE’s clear focus on sustainability through its UN-awarded sustainable finance platform the Luxembourg Green Exchange (LGX), has led the exchange to cooperate with exchanges and other financial institutions in emerging markets to foster sustainable finance across the world. Rwanda has launched several initiatives focused on increasing climate change awareness within and beyond its borders. It was the first African nation to ban the single-use of plastic in 2019 and set up Africa’s largest green fund, the National Fund for Environment – FONERWA in 2012, in order to finance its ambitious plans of being carbon neutral and climate resilient by 2050. 
 
The MoU between the two exchanges reflects the increased cooperation between Luxembourg and Rwanda. In October 2021, Luxembourg's Minister of the Economy and Development, Cooperation and Humanitarian Affairs Franz Fayot and Rwanda's Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana, signed an MoU on the development of a financial centre in Kigali, with a specific focus on capacity building, sustainable finance as well as the establishment of a fintech ecosystem and an impact investment market.