CAIRO, Oct 15 – The Egyptian Exchange – EGX is exploring the possibility of allowing Egyptian investors to trade shares in Dangote Group companies through Egyptian depositary receipts (EDRs), a move that could expand cross-border investment opportunities and strengthen financial ties between Egypt and other African markets.
EGX Chairman Omar Radwan said the exchange was seeking to cooperate with Dangote Group to assess the feasibility of the arrangement, which could give Egyptian investors exposure to industrial and commodity businesses in West Africa while providing African companies with access to liquidity in Egypt’s capital market.
Dangote Group founder and Chairman Aliko Dangote outlined the group’s broader investment strategy at a meeting organised by the EGX on Thursday, describing Egypt as an important part of its investment ecosystem.
“Egypt represents a central and active part of this major investment ecosystem,” Dangote said during a press conference at the exchange.
The group’s expansion plans span energy, petrochemicals, construction materials and agriculture, with Dangote emphasising the need to expand local manufacturing, create jobs and reduce Africa’s dependence on imported finished goods.
Energy and Petrochemicals Drive Expansion
Dangote said the group’s refinery had stabilised at a record production rate of 700,000 barrels per day, reinforcing its role in Nigeria’s petroleum supply chain.
Its broader energy programme includes plans for a 530-kilometre subsea gas pipeline and electricity generation capacity of up to 10,000 megawatts to support industrial development in several African countries, including Zambia.
In petrochemicals, the group is developing plans for a linear alkylbenzene plant with annual capacity of 400,000 metric tons, which Dangote described as potentially the world’s largest of its kind. The company also intends to expand its urea and polyethylene operations.
These investments would broaden the group’s industrial footprint beyond refining and cement, increasing its exposure to products used in manufacturing, agriculture and consumer industries.
Cement and Agriculture Expansion
Dangote Group aims to increase annual cement production capacity to 100 million metric tons by 2030, further consolidating its position as Africa’s largest cement producer.
The group also plans to expand sugar manufacturing and agricultural investment to strengthen food production and reduce reliance on imports. Dangote pointed to the potential of millions of hectares of underutilised land across Africa, although the scale and timing of individual agricultural projects were not specified.
He said the continent’s industrial ambitions would depend partly on access to affordable, flexible financing and financial institutions capable of supporting long-term investment.
The group also intends to develop integrated industrial zones equipped with essential infrastructure, including reliable electricity and water supplies, to attract investors and support manufacturing activity.
Egyptian Exchange Studies Access to Dangote Shares
Alongside the expansion announcement, the Egyptian Exchange is examining whether Egyptian investors could gain exposure to Dangote Group companies through Egyptian depositary receipts (EDRs).
EGX Chairman Omar Radwan said the exchange was exploring cooperation with the group to assess the feasibility of making shares in its industrial businesses available to investors in Egypt.
Depositary receipts can provide investors in one market with a mechanism to gain exposure to securities issued in another jurisdiction, subject to the relevant regulatory and operational arrangements.
If implemented, the proposal could give Egyptian investors access to industrial and commodity businesses operating in West Africa, while potentially broadening the investor base available to Dangote Group companies.
The initiative could also create opportunities for Egyptian institutional investors and family offices to diversify their portfolios. For African companies, access to additional pools of capital could help improve liquidity and strengthen connections between the continent’s financial markets.
Radwan said the exchange was prepared to work with Dangote Group on the regulatory and operational requirements. The proposal remains under consideration, with no final implementation decision announced.
Afreximbank Calls for Greater African Participation
George Elombi, President and Chairman of the Board of the African Export-Import Bank (Afreximbank), urged African investors to participate in the proposed Dangote share offering, arguing that broader ownership could help distribute the benefits of corporate growth across the continent.
Speaking at the EGX event, Elombi said the participation of African financial institutions and capital-market leaders demonstrated the potential to mobilise domestic and regional capital for development.
He argued that wider investor participation could help finance industrial expansion while allowing more Africans to benefit from the returns generated by major companies operating on the continent.
Elombi described Dangote Group as a development partner whose activities could extend economic opportunities to Africans at home and abroad, including diaspora communities and those in the Caribbean.
He added that financial institutions should contribute to building a more resilient and economically independent Africa, rather than focus exclusively on financial returns.
Elombi encouraged Egyptian investors to consider participating in the offering, including through relatively small investments, and called on African media to raise awareness of opportunities to invest in African businesses.
The discussions bring together two related priorities: expanding the productive capacity of African industry and improving the mechanisms through which African savings can finance that growth. Whether the proposed depositary-receipt arrangement proceeds will depend on the feasibility assessment and the regulatory requirements involved.
