Cairo – Nigerian billionaire Aliko Dangote is seeking to broaden African investor participation in his industrial empire as the Egyptian Exchange explores a mechanism that would allow local investors to buy shares in his companies, including through his $1.6 billion refinery initial public offering (IPO).
According to Billionaires.Africa, Dangote outlined his group’s expansion strategy at a press conference in Cairo on Thursday, 15 October, identifying Egypt as a key market for its industrial ambitions.
“Egypt represents a central and active part of this major investment ecosystem,” Dangote said, according to Ahram Online.
The Dangote Group plans to invest between $10 billion and $15 billion in Egypt, although details of specific projects and their implementation timelines have yet to be disclosed.
Broader expansion strategy
The proposed investment forms part of a broader expansion strategy spanning energy, petrochemicals, construction materials and agriculture.
The Egyptian Exchange is considering introducing Egyptian depositary receipts (EDRs), which would enable local investors to gain exposure to Dangote Group companies through securities traded in Cairo rather than purchasing shares directly on Nigeria’s stock exchange.
Egyptian Exchange chairman Omar Radwan said the bourse was prepared to work with Dangote’s leadership to assess the proposal.
“We are ready to work alongside your leadership team to examine the operational modalities for establishing an EDR framework,” Radwan said, according to Amwal Al Ghad.
The proposed arrangement remains under consideration, and no launch date has been announced.
Refinery IPO expands investor access
The move comes as Dangote Petroleum Refinery and Petrochemicals seeks to raise about $1.6 billion through the sale of 4.1 billion shares at ₦525 each. The offer has been extended to 27 October to give more investors time to participate, according to the refinery’s official IPO notice.
The proposed expansion of investor access comes amid efforts to deepen African capital markets and encourage greater cross-border investment. Reuters reported that the refinery’s public offering could help deepen African capital markets by encouraging more retail investors to invest in major domestic businesses.
Dangote has also outlined plans to increase his group’s annual revenue to at least $100 billion by 2030 while expanding its industrial operations across the continent.
Emphasising the importance of developing local industries, Dangote said: “If we don’t, as Africans, industrialise our continent, nobody else is going to,” according to Billionaires.Africa.
The proposed Egyptian investment mechanism could strengthen financial links between North and West Africa, giving Egyptian investors exposure to industrial assets while potentially widening the pool of capital available to Dangote’s businesses.
However, the plan remains at the feasibility stage, with implementation dependent on regulatory approvals and the development of appropriate operational arrangements.
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Compiled by Betha Madhomu
