This milestone marks a significant step for Rwanda's capital markets at a time when the global demand for responsible investing and sustainability is rapidly increasing.
At the launch event, Pierre Celestin Rwabukumba, the CEO of RSE, highlighted the importance of these guidelines in positioning Rwanda as a competitive player in the global investment landscape. He explained that ESG is no longer just a trend but a foundational element for attracting investments.
'ESG is not just a trend but a fundamental pillar for attracting global investment. By adopting ESG reporting, we are ensuring that Rwanda remains competitive and aligned with international standards for responsible investing,' Rwabukumba said.
The guidelines, developed over the past two years in collaboration with various stakeholders, aim to support companies listed on the Stock Exchange as well as those beyond it.
Rwabukumba further emphasized that while the global emphasis on ESG is growing, the RSE is taking proactive steps to ensure that local companies are not left behind. He assured companies that the guidelines are flexible, offering enough time for them to align with the new framework.
'ESG has become dominant in investment decisions. A lot of investors today are not just focusing on profitability. They are looking at the environmental, social, and governance impact of businesses,' he noted.
Dr. James Ndahiro, the Technical Advisor from the Capital Market Authority (CMA), reinforced the significance of sustainability for Rwanda's future economic development. In his address, he noted that markets must lead the way in transparency and accountability.
"Our markets must lead the way in transparency and accountability. ESG reporting is a cornerstone for creating businesses that not only deliver financial returns but also contribute to environmental stewardship and social development,' Ndahiro stated.
Bhongolwethu Sonti, the Africa Program Manager at GRI, shared his insights into how companies can implement ESG reporting frameworks.
'Effective ESG reporting allows businesses to align their operations with global sustainability goals while addressing local challenges. This is how we create resilient and impactful organizations,' Sonti explained.
He also underscored the importance of strong corporate governance as the foundation for successful ESG integration, emphasizing that businesses must ensure transparency, accountability, and ethical decision-making at all levels.
Sonti praised Rwanda's commitment to sustainability, noting that the country's strong governance structures make it an ideal environment for the integration of ESG principles.
He encouraged businesses to embrace the guidelines not merely as a compliance requirement but as an opportunity to innovate and adapt to a rapidly changing global landscape.
The launch event was preceded by a one-day training session facilitated by Protos Capital LLP, where Loise Wangui Musyoka, Managing Partner at Protos, spoke about the importance of integrating ESG into business strategy.
'ESG reporting is more than a compliance exercise; it is a powerful tool for driving innovation and building trust with stakeholders. These guidelines are not just a process flow document; they are a how-to guide that provides templates and tools to help companies integrate ESG into their operations,' Musyoka remarked.
She addressed concerns regarding the cost of implementing ESG practices. While acknowledging that there are initial costs, especially for upskilling internal teams and adapting business operations, she argued that the cost of non-compliance could be far higher in the long run.
Jean Claude Uwizeyemungu, the Managing Director, Mahwi Grain Millers Ltd, one of the companies listed on the RSE said that the launch of these ESG guidelines is a critical step for Rwanda, not only in attracting investments but also in positioning the country as a leader in sustainable business practices in Africa.
With this new framework in place, Rwanda, through RSE, becomes the seventh member of the Africa Stock Exchange Association and only the second in the East African region. It joins countries including South Africa, Botswana, Kenya, Egypt, Morocco and Eswatini.
This shows that capital markets are slowly but surely moving towards meeting the growing global demand for transparency, accountability, and sustainability in business operations.
Sam K Nkurunziza
Source : https://en.igihe.com/news/article/rse-adopts-new-sustainable-investing-reporting-guidelines
