Amid Xenophobic Fights, South Africa Seeks Economic Reset With Nigeria, Targets Dangote Refinery Listing On Johannesburg Stock Exchange

Amid Xenophobic Fights

 

OpenLife News reports that South Africa is making fresh overtures to deepen economic ties with Nigeria, with the Johannesburg Stock Exchange targeting a secondary listing of the Dangote Petroleum Refinery to expand cross-border liquidity.

The pursuit forms a broader part of the South African bourse’s strategy to attract high-profile African corporates and expand cross-border liquidity, positioning itself as the premier listing destination on the continent amid competition amongst global and regional exchanges.

Valdene Reddy, Johannesburg Stock Exchange Chief Executive Officer, said Dangote Refinery is among a strong pipeline of prospective listings expected in the second half of the year, alongside companies in the mining, fintech, property and construction sectors.

“They will go and list in Nigeria first, but with a strong intent to hopefully bring that listing to South Africa shortly thereafter on the JSE. It would be a great opportunity for a diversified play of high demand with such a strong African corporate listing on the JSE,” Reddy said in an interview with CNBC Africa.

Dangote’s refinery’s planned IPO, estimated at $5 billion, is expected to become the largest public offering ever undertaken in Africa.

The offering has attracted interest from several African exchanges, including those in Kenya, Egypt, Ghana and Rwanda, as well as an oversubscribed private share placement of participants keen to invest in the continent’s most significant capital market transaction.

The move comes amid efforts by Pretoria to reset relations with Africa’s largest economy following years of xenophobic attacks on Nigerians and businesses in South Africa.

Analysts confirm that a secondary listing would give South African and regional investors access to one of Africa’s biggest downstream energy assets, while also improving liquidity and capital flows between the two economies.

“A Dangote Refinery listing on the JSE would be a landmark deal and signal that we are open for serious African business,” a source in the financial sector said.

The Dangote Refinery, located in Lagos, began operations in 2024 and has been positioned as a game-changer for Africa’s energy security. A secondary listing would follow its planned local listing on the Nigerian Exchange.

Officials in both countries have in recent months spoken about the need to de-escalate trade and diplomatic tensions.

Nigeria remains one of South Africa’s biggest trading partners, but relations have been strained by periodic xenophobic violence and regulatory hurdles.

The JSE is Africa’s largest stock exchange by market capitalization. Attracting Dangote Refinery would strengthen its position as the go-to listing destination for major African corporates.

Dangote Industries is yet to comment on the proposal. If concluded, the listing would be one of the biggest cross-border listings on the continent and could pave the way for more Nigerian companies to tap South African capital markets.