Speaking on Sanny Ntayombya's Long Form podcast, Rwabukumba revealed that a single government bond, costing just RWF 100,000 and yielding 11% annually, offers a low-risk way to beat bank savings rates and build long-term wealth.
'It's as easy as opening a bank account,' he told the host.
According to Rwabukumba, a government bond at RWF 100,000 pays 11% a yearâ€"far outstripping the 8-9% interest typical savings accounts provide.
'Buy ten bonds for 1 million RWF, and every six months, you'd get about RWF 55,000 â€"totaling RWF 110,000 yearly,' he explained.
'After three years, you get your 1 million back," he added.
Reinvesting the interest allows the magic of compounding to kick in, with the CEO disclosing that RWF 1 million doubles to 2 million in roughly six years and climbs toward 3 million in a decade.
For a young Rwandan making RWF 200,000 a month, Rwabukumba suggested setting aside RWF 50,000 regularly. That habit alone could accumulate to RWF 6 million in ten years.
'It's not about the size of the savings,' he emphasized, 'but the discipline behind it.'
While private bonds might tempt with 14% returns, he prefers the government variety for their safety.
'Sure, a government could go broke,' he acknowledged with a shrug, 'but a nation keeps goingâ€"and Rwanda's track record is solid.'
A Market Hungry for More
Under Rwabukumba's leadership, the Rwanda Stock Exchange has demonstrated robust demand. He highlighted that every initial public offering since the exchange's inception in 2011 has been oversubscribed by at least threefold, citing examples like Bank of Kigali's $100 million raise and Bralirwa's RWF 17 billion listing.
'We've never seen an undersubscription,' he stated, underscoring the market's strength.
However, secondary market activity remains subdued, with investors holding onto bonds and shares. This year's trading volume reached RWF 100 billion, a significant increase from periods of near-zero activity in prior years, though liquidity remains a challenge.
Rwabukumba also noted the $500 million in annual remittances from Rwanda's diaspora as a potential catalyst.
'That's capital from our own citizens,' he explained, suggesting it could finance infrastructure projects like roads or the Bugesera Airport, reducing reliance on foreign aid.
He views this as a critical move toward economic self-sufficiency, driven by retail investor participation.
Rwabukumba outlined a streamlined process for investing in RWF 100,000 bond. The first step, he explained, is deciding to prioritize saving over spendingâ€"a foundational shift in financial behavior.
Next, investors must open a Central Securities Depository (CSD) account through one of the six active stockbrokers listed on rse.rw. The process is cost-free, requiring only an ID and two passport photos, and is accessible remotely, including for diaspora members.
The final step involves transferring RWF 100,000 to the broker's client account during a Central Bank bond issuance, yielding RWF 5,500 semi-annually.
'The system is online and straightforward, with no in-person requirement,' he affirmed.
Retail investors benefit from priority access in Rwanda's oversubscribed primary market, ahead of institutional buyers. Rwabukumba added that mobile-based transactions via USSD codes are in development, signaling further accessibility improvements.
Despite the opportunity, participation remains limited. Rwabukumba identified inadequate public awareness as a primary obstacle.
'The lack of effective communication means many don't understand what's available,' he observed.
He noted that spending patternsâ€"such as high consumption in the last week of each monthâ€"or investments in non-liquid assets like undeveloped land divert capital from the market. By comparison, he praised savings cultures in other regions, where individuals allocate half their income to investment before discretionary spending.
With only 100,000 active investors against a population of 13 million, he warned that low engagement undermines wealth creation potential.
'Without market participation, financial growth will stall,' he remarked.
Rwabukumba emphasized that bonds are just the beginning. He explained that each bond purchase supports infrastructure development while generating returns, aligning individual and national interests.
The RSE is preparing to launch Real Estate Investment Trusts (REITs) to enable ownership in high-value properties like Kigali Towers, alongside Exchange-Traded Funds (ETFs) and Sharia-compliant instruments to attract Middle Eastern capital.
Watch the full interview below:
Wycliffe Nyamasege
