BSE nears Dangote IPO deal
Mbongeni Mguni | Monday October 12, 2026 06:00
Powered by Africa’s richest man, Aliko Dangote, the IPO is forecast to deliver dollar-based returns at market-beating rates, given the success of the existing 700,000-barrel-per-day plant outside Lagos. The Dangote group plans to use the proceeds from the IPO to expand further into energy and other opportunities, which include a pipeline running through Botswana.
Already, local pension funds, who hold more than P176 billion, have signalled strong interest in accessing the IPO, with direct petitions made to Dangote during a recent visit to Gaborone.
BusinessWeek is informed that the BSE is exploring access via instruments called sponsored or unsponsored depository receipts. Under the sponsored variety, the Dangote Group would set aside shares in the recently opened IPO for a depository bank to support tradable receipts at the local level for investors in the country. In the unsponsored scenario, the depository bank would go it alone, snap up a block of shares and avail the same tradable receipts to the BSE.
BusinessWeek is informed that Standard Bank and Access Bank are in discussions to help the BSE with access via the depository receipts.
Earlier this year, the BSE issued its guidance for the listing of this type of vehicle, called 'Botswana Depository Receipts' or 'BDRs'.
BSE officials played their cards close to their chests when contacted for comment on the matter.
“The BSE is engaging with all the relevant parties regarding the Dangote Refinery IPO, and the structuring of other products and potential avenues through which investors in Botswana could access the offering,” Thapelo Moribame, head of market development at BSE, told BusinessWeek in a written response.
She added: “As is customary with capital markets transactions, the details of any participation or distribution arrangements remain subject to the necessary commercial, regulatory and operational processes and would only be confirmed once the time is right and there is information appropriate for public communication through the BSE channels.”
The BSE did, however, hint that efforts were ongoing around the IPO, with a statement last week indicating that the exchange was “working on how interested Batswana can explore participation” in the float.
Whilst securing access to the shares at the local level would not necessarily give the shares “local asset status” as defined by NBFIRA, local investors would enjoy lower fees, costs, and potentially the benefit of buying in using the pula.
The BSE’s guidance on depository notes lists their benefits to local investors.
“BDRs offer local investors access to global investment opportunities without having to bear most of the trading and custodial costs normally associated with such crossborder transactions,” the exchange said.
“Investors are buying shares of a foreign listed company on the BSE where they are familiar with the trading, clearing, and settlement processes of the BSE and CSDB. “BDRs provide increased diversification into non-Botswana securities without many of the obstacles investors may experience during the purchase and holding of securities outside of their local market.”
The Committee of SADC Stock Exchanges (CoSSE) has also nominated Botswana to be the host of any depository receipts from the listing. CoSSE chair, Colleen Tapfumaneyi, told the recent meeting with Dangote that a sponsored depository receipt anchored on the BSE and distributed through the CoSSE network deserved particular attention and consideration.
“Rather than requiring multiple separate listings across 13 markets or 13 countries, this depository receipt structure potentially provides one regional anchor in Botswana with access distributed across several Southern African countries. “Southern African exchanges have vast experience in depository receipts, secondary listings, and cross-border listed securities,” he said.