KEY POINTS
- Dangote Industries and the Botswana Stock Exchange have endorsed NGX Group’s efforts to expand cross-border investment opportunities across African capital markets.
- The initiative is being promoted through a roadshow for the Dangote Petroleum Refinery and Petrochemicals FZE offer.
- NGX plans further engagements with the Egyptian Exchange and Ethiopian Securities Exchange to strengthen cooperation among African markets.
MAIN STORY
Dangote Industries Limited and the Botswana Stock Exchange (BSE) have backed the Nigerian Exchange Group’s (NGX Group) efforts to strengthen cooperation among African capital markets and expand cross-border investment opportunities.
The endorsements came on Wednesday at an investor engagement in Gaborone, Botswana, during the ongoing roadshow for the Dangote Petroleum Refinery and Petrochemicals FZE offer, according to a statement issued by NGX Group.
Murat Erden, group chief financial officer of Dangote Industries, commended NGX Group for bringing African capital-market institutions together to widen investment opportunities across the continent.
Erden acknowledged the leadership of NGX Group Chairman, Alhaji Umaru Kwairanga, and Group Managing Director, Temi Popoola, in advancing the initiative.
He said the collaboration, which began with an engagement in Lagos in April, demonstrated the potential of partnerships among African stock exchanges.
Erden also highlighted digital innovation, particularly the integration of WhatsApp into NGX Invest, as a way to broaden access to the refinery offer.
Aobakwe Aupa Monyatsi, chief executive officer of the Botswana Stock Exchange, also welcomed the partnership, saying cooperation among African exchanges could expand investor participation.
He added that the initiative could encourage more African markets to participate in collaborative efforts to strengthen investment flows across the continent.
At an earlier engagement in Nairobi, Kenya, Aliko Dangote, president and chief executive of Dangote Industries, commended NGX Group for promoting cooperation among African capital-market institutions.
Dangote said stronger relationships among exchanges could enable businesses to raise capital across multiple markets rather than depend exclusively on domestic investors.
He cited the planned refinery in Mokowe-Lamu, Kenya, as an example of how businesses operating across Africa could explore listings in multiple markets.
Kwairanga said the initiative reflected NGX Group’s ambition to strengthen connections among African capital markets and improve access to investment opportunities.
“Our vision is to build stronger connections among African capital markets, making it easier for businesses to access capital and for investors to participate in opportunities across the continent.
“The collaboration around the Dangote Refinery offer demonstrates what African exchanges can achieve when we work together toward a shared objective,” Kwairanga said.
Popoola said the initiative was intended to turn the ambition of continental integration into practical partnerships among African exchanges.
He said collaboration could give businesses access to a wider pool of investors while creating more opportunities for investors across participating markets.
NGX Invest, the group’s electronic public-offering platform, supports subscriptions through more than 180 distribution channels, including stockbrokers, banks and fintech companies.
The addition of WhatsApp as an access channel is expected to provide investors with another way to subscribe to the offer.
The roadshow will continue with engagements at the Egyptian Exchange and the Ethiopian Securities Exchange, as NGX Group seeks to deepen institutional cooperation and expand cross-border investment opportunities across Africa.
THE ISSUES
African businesses seeking to raise capital often operate in markets with different investor bases, regulatory requirements and trading infrastructure. Stronger links among stock exchanges could help companies reach investors beyond their home countries and give investors access to a broader range of opportunities.
The Dangote refinery offer roadshow provides a platform for testing how collaboration among exchanges can support investment distribution across national borders. However, endorsements from market institutions do not, on their own, establish the volume of cross-border investment that the initiative will generate.
Digital access is another part of the strategy. By adding WhatsApp to NGX Invest’s existing distribution channels, NGX is seeking to make subscription processes more accessible. The impact will depend on the ease of use, investor awareness and the effectiveness of the subscription process.
For African capital markets, the longer-term challenge is to turn cooperation into practical arrangements that make it easier for businesses to raise funds and investors to participate across jurisdictions.
WHAT’S BEING SAID
- “Our vision is to build stronger connections among African capital markets, making it easier for businesses to access capital and for investors to participate in opportunities across the continent.”-Alhaji Umaru Kwairanga, NGX Group Chairman
- “The collaboration around the Dangote Refinery offer demonstrates what African exchanges can achieve when we work together toward a shared objective.” – Alhaji Umaru Kwairanga, NGX Group Chairman
WHAT’S NEXT
NGX Group is scheduled to continue its roadshow with engagements at the Egyptian Exchange and the Ethiopian Securities Exchange.
The next stages will test whether the initiative can attract broader participation from African capital-market institutions and improve access to investment opportunities across participating markets.
The use of NGX Invest and its additional WhatsApp channel will also be relevant to assessing how digital distribution can support subscriptions to the refinery offer.
BOTTOM LINE
Support from Dangote Industries and the Botswana Stock Exchange strengthens NGX Group’s push for greater cooperation among African capital markets. The initiative’s success will ultimately depend on whether these partnerships translate into wider investor participation and more effective cross-border fundraising for African businesses.
 have backed the Nigerian Exchange Group's (NGX ...){kind=link}