Dangote Group announces a plan to invest in Egypt

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African businessman Aliko Dangote, Chairman of the Dangote Group, said that the group aims to pump investments worth $50 billion until 2030, expressing his aspiration for Egypt to own a part of these investments, within the framework of the group’s strategy to accelerate the pace of industrialization in Africa and enhance reliance on local production.

The Egyptian Stock Exchange received, at its headquarters in central Cairo, Aliko Dangote, to discuss prospects for cooperation and opening channels for the flow of cross-border capital between north and west of the African continent.

Dangote explained that the group's vision for 2030 aims to lead the industrial transformation on the continent by building companies capable of competing globally, and transforming African natural resources into value-added final products, which contributes to creating job opportunities, achieving self-sufficiency and economic prosperity.

He pointed out that exporting raw materials without manufacturing them locally deprives African economies of real gains and promising job opportunities, stressing that industrial expansion represents the basic foundation for sustainable economic development and the continent’s ability to meet its consumption and production needs.

Omar Radwan, Chairman of the Board of Directors of the Egyptian Stock Exchange, revealed a strategic path aimed at offering Egyptian Depository Receipts - EDRs linked to the shares of companies affiliated with the Dangote Industrial Group, describing this step as a pivotal opportunity to achieve financial integration and joint capital formation on the continent level.

The Chairman of the Stock Exchange stressed that the structure of Egyptian certificates of deposit achieves double and direct investment value for investors and institutions in Egypt and the region. It provides an investment tool offered to local investors and allows portfolio diversification and direct access to major industrial assets in West Africa that enjoy strong returns, without bearing the risks or complications of cross-border cash transfers.

Radwan explained that the Egyptian Stock Exchange is currently studying with the leaders of the Dangote Group the possibility of launching these certificates during the next stage, noting that the financial linkage through certificates of deposit lays the foundation for an economic and industrial alliance linking the production and logistical base in Egypt and the huge consumer market in West Africa.

He added that Aliko Dangote's visit coincides with an unprecedented stage of growth and dynamism for the Egyptian financial market, saying: "The Egyptian Stock Exchange is achieving historic records in its main indices, led by the main index EGX30, amid a remarkable rise in market value and liquidity flows. These are indicators that confirm the strength of the financial positions of listed Egyptian companies, and the increasing confidence of institutional and international investment in the solidity and attractiveness of the market."

He stressed that the objectives of the current stage are based on attracting major multinational groups and companies, and continued: “We are working according to an ambitious strategy aimed at creating a competitive and advanced trading environment to attract global entities and African giants. Cairo possesses all the regulatory components and the depth of liquidity that makes it a regional launching pad and a major financial hub for companies seeking to expand and achieve added value across borders. We affirm our full commitment to partnering with business leaders in Africa to build, finance and lead the economy of our continent with our own hands.”

Mohamed Awad, CEO of the General Authority for Investment and Free Zones, said that Egypt is keen to strengthen investment and economic partnerships with major African groups and companies.

The Chairman of the Authority expressed his aspiration to build a long-term strategic partnership with the Dangote Group, which will enhance investment cooperation between Egypt and African countries, support continental economic integration efforts, and open new horizons for growth and joint investment.

George Elombi, Chairman of the Board of Directors of the African Export-Import Bank (Afrixim Bank), stressed the bank’s commitment to continuing to support the Dangote Group in its journey to bring about a comprehensive economic and industrial transformation on the continent, pointing out that the group’s initial public offering represents a milestone in enhancing the participation of the African business community and investors in the ownership of major entities, and mobilizing regional capital to serve development.