Dubai’s sovereign-wealth makes its first major investment in Nigeria’s economy.
Wall Street Journal by Nicholas Parasie
September 8, 2014
DUBAI—Dubai’s sovereign-wealth fund said Monday it is buying a minority stake in Nigeria’s Dangote Cement for $300 million as the Gulf emirate makes it first major investment in Africa’s largest economy.
Dangote Cement, which is listed on the Nigeria Stock Exchange and has a market value of around $23 billion, was founded and is still controlled by Nigerian business magnate Aliko Dangote. It is a leader in its domestic market and plans to nearly double production capacity by 2018 and expand abroad with new plants scheduled in South Africa, Senegal, Zambia, Cameroon and Sierra Leone.
“We believe sub-Saharan Africa, and particularly Nigeria, provides fantastic long-term investment opportunities,” said Mohammed Ibrahim Al Shaibani, chief executive of the Investment Corporation of Dubai. He said the Dangote investment allows ICD to “access and act on growth opportunities across the continent.”
Nigeria is Africa’s largest economy worth around $510 billion and gross domestic product is set to grow around 7% in the coming years, according to the International Monetary Fund.
ICD controls some of the emirate’s crown jewels such as Emirates Airline and Emaar Properties.
Dubai’s flagship carrier Emirates has already set up an extensive network across Africa as the emirate seeks to promote its role as the trade intermediary between the continent and the rest of the world.
Last month, ICD said it is teaming up with the Export-Import Bank of Korea to jointly pursue investments in Asia, the Middle East and Africa