Tawanda Musarurwa
ZIMBABWE’S capital market stands to gain from a wider regional market, with the proposed Botswana-listed depository receipt programme tied to the Dangote Petroleum Refinery initial public offering (IPO) intended as a key first step, according to the Committee of SADC Stock Exchanges (CoSSE).
The Dangote Petroleum Refinery IPO is an initial public offering by Dangote Petroleum Refinery and Petrochemicals FZE in Nigeria, aiming to raise roughly US$1,6 billion.
Proceeds from the IPO are meant to back a US$14,3 billion programme to scale the Dangote Petroleum Refinery’s capacity from 700 000 barrels per day up to 1,4 million barrels per day by 2029.
Zimbabwean investors are participating in the US$1,6 billion IPO of Dangote Petroleum Refinery and Petrochemicals FZE to gain direct exposure to a major Pan-African industrial asset and energy sector not locally available in Zimbabwe.
CoSSE chairperson Mr Collen Tapfumaneyi who also serves as the chief executive officer of the Financial Securities Exchange (FINSEC), said: “The longer-term opportunity is equally important.
“We envisage a future in which Zimbabwean investors can access a wider range of African securities through appropriately regulated regional market connections, while Zimbabwean issuers can similarly benefit from access to investors across other African markets.
“Ultimately, our objective is not simply to facilitate participation in one IPO, but to contribute to the development of a more integrated and accessible African capital market.”
Mr Tapfumaneyi was speaking in an interview following an investor roadshow in Gaborone, Botswana, on October 14, where Mr Aliko Dangote personally presented his industrial vision to Southern African investors.
The group’s chief financial officer Mr Murat Erden delivered a detailed presentation outlining the investment opportunity and the underlying IPO details.
He described the engagements as “an important milestone” in broader efforts to expand Southern African investors’ access to major economic opportunities across the continent.
One of the key outcomes of the engagement was the extension of the IPO subscription period to October 27, 2026.
Through CoSSE, regional exchanges had advocated for additional time so that participating markets could put formal investor mobilisation and subscription arrangements in place.
“We appreciate the positive consideration given to these representations,” Mr Tapfumaneyi noted.
He explained that the Botswana Stock Exchange is set as the proposed regional listing and trading hub, supported by local market intermediaries and institutional depository arrangements.
The intention is to grant eligible investors in participating Southern African markets access to the underlying investment through Botswana Depository Receipts (BDRs).
Outlining the structure, Mr Tapfumaneyi detailed two key components of the deal: Dangote Group remains responsible for the underlying equity issuance and its primary investment disclosures, while the BDR structure acts as a capital-market access mechanism developed through participating Botswana market institutions.
He said discussions with Dangote representatives focused heavily on regional integration, the active participation of Southern African investors and setting a realistic subscription timetable.
He added that CoSSE was encouraged by “the constructive engagement and the group’s willingness to accommodate broader regional participation”.
Pension funds and the offshore allowance
The initiative comes against a relevant regulatory backdrop for Zimbabwe’s institutional investors.
Since 2022, the Insurance and Pensions Commission (IPEC) has allowed local pension funds to invest up to 15 percent of their total assets outside Zimbabwe, a provision designed to diversify portfolio risk and preserve value in foreign currency.
Zimbabwe Association of Pension Funds (ZAPF) director-general Mrs Sandra Musevenzo noted that investing in the Dangote IPO presents a unique growth vector.
“The transaction provides an opportunity for pension funds to participate in African industrialisation and benefit from the development of productive assets,” she said.
“The proposed depository receipt structure offers a potentially accessible route for Zimbabwean funds to invest across borders through established market infrastructure.”
Mr Tapfumaneyi reiterated that the regional access mechanism targets “eligible investors” in participating markets and that FINSEC’s goal is to broaden access to regional securities, while positioning Zimbabwean issuers to tap into capital across the continent in the future.
The immediate priority remains operationalising subscription arrangements during the remaining offer window.
BDR issuance and the commencement of secondary-market trading will depend on the successful completion of subscription, allotment, custody, regulatory and listing approvals.
“We are encouraged by the progress, while recognising that the final implementation timetable remains subject to relevant approvals and transaction arrangements,” Mr Tapfumaneyi said.
CoSSE has established a flexible framework allowing member exchanges to participate directly as investor mobilisation hubs, facilitate access through licensed intermediaries or assist local brokers in engaging designated Botswana transaction parties.
“This flexibility is crucial because regulatory frameworks, market infrastructure and intermediary arrangements differ across SADC countries,” Mr Tapfumaneyi observed, framing the project as “a practical template for future cross-border capital raising across Southern Africa”.
As a full member of CoSSE and a licensed Alternative Trading Platform in Zimbabwe, FINSEC’s core role is to facilitate access for eligible local investors via its market infrastructure and broker network within applicable regulations, alongside driving investor awareness.
The next major milestone is the close of the IPO subscription window on October 27, 2026, though local participating markets may establish earlier deadlines to accommodate operational and settlement workflows.
Investors are advised to monitor official announcements regarding share allotments, depository setups, regulatory sign-offs, BDR issuance and the official admission to trading on the Botswana Stock Exchange.
