Dangote Targets London Listing to Fund Cement Expansion
Africa’s richest man, Aliko Dangote, is considering listing part of his cement business in London in what could become one of the biggest international market moves by a Nigerian industrial group in recent years.
The proposed listing is expected to deepen access to global capital, attract large institutional investors, and strengthen the international profile of Dangote Cement Plc, Africa’s largest cement producer.
According to a report by the Financial Times on Thursday, the company is exploring plans to list part of its cement operations in London as it accelerates its pan-African expansion strategy and seeks broader access to international financing.
The report read, “Aliko Dangote is considering listing part of his cement business in London to access deeper global capital pools. Dangote Cement is Africa’s largest cement producer, with a total installed capacity of about 55 million tonnes per annum across over 10 countries.
“A London listing could attract more institutional investors from Europe and North America, improving valuation and expanding the investor base. The company’s strategy focuses on aggressive regional expansion to meet growing infrastructure and construction demand across Africa.”
The move comes amid growing efforts by the Dangote Group to deepen its presence in global capital markets following its recent entry into international debt financing.
Dangote Cement currently has an installed production capacity of approximately 55 million tonnes per annum, spread across more than 10 African countries, making it the continent’s largest cement producer by output.
The company operates major cement plants and grinding facilities in Nigeria and several African markets, including Ethiopia, Senegal, Tanzania, and Zambia. In Nigeria, the company controls a significant share of the domestic cement market and remains one of the country’s most valuable listed manufacturing firms.
Its market capitalisation is estimated at between $10bn and $11bn, depending on equity market performance and currency movements. The report noted that the London listing could significantly improve the company’s access to long-term foreign capital and broaden its investor base beyond Africa.
The move is also expected to attract institutional investors from Europe and North America who manage trillions of dollars in global assets but maintain limited exposure to African industrial companies.
Experts noted that the listing could improve the company’s valuation multiples compared to reliance solely on emerging market exchanges where liquidity is relatively lower.
The planned London listing also signals Dangote’s growing ambition to transform his businesses into globally recognised industrial assets capable of competing for international investment flows.
The cement company’s expansion strategy has increasingly shifted from domestic dominance to regional market penetration as infrastructure demand rises across Africa.
Across the continent, rapid urbanisation, housing deficits, transport infrastructure development and population growth are fueling higher demand for cement and construction materials.
The African Development Bank has repeatedly estimated that Africa faces an annual infrastructure financing gap exceeding $100bn, largely linked to roads, housing, energy, and transportation projects.
Dangote Cement has positioned itself to benefit from this long-term infrastructure growth cycle. The company has also strengthened its regional export footprint as Nigeria’s cement production capacity increasingly exceeds local demand.
This export strategy has expanded Dangote Cement’s role in West and Central African construction markets. The London listing initiative also coincides with broader fundraising plans across Dangote’s industrial empire.
In a related development, Dangote is exploring more opportunities to raise funds from international investors after making its first major entry into global debt markets last month.
The company’s Chief Financial Officer, Murat Erden, told Bloomberg News that the group was considering bond issuances to support some of its energy, fertiliser, and industrial businesses.
Dangote Fertiliser Limited recently raised $750m through a private bond placement in April, marking the group’s first major international capital market transaction. The fertiliser company operates Africa’s largest urea production plant.
Speaking on the fundraising strategy, Erden said the group was “opportunistically” exploring bond issuances to align financing structures with subsidiaries earning dollar revenues and to support long-term investment programmes.
The company is also preparing to sell about 10 per cent of its refinery business through an initial public offering on multiple African stock exchanges this year.
The $20bn refinery located in Lekki is currently Africa’s largest refinery and has plans to expand production capacity from 650,000 barrels per day to 1.4 million barrels daily by 2028.
Dangote Industries is simultaneously pursuing several ambitious projects, including plans to develop Nigeria’s biggest deep seaport, expand urea production to 12 million tonnes annually by 2030, diversify into liquefied gas, and construct a 20,000-megawatt power plant.
According to the Bloomberg Billionaires Index, Dangote’s net worth is estimated at about $35.4bn. The billionaire businessman is targeting at least $40bn in investments over the next five years to drive expansion across the group’s industrial operations.
Investment bankers involved in the recent bond placement described the transaction as a landmark step for the conglomerate.
Stefan Weiler, Head of Debt Capital Markets for Central Europe, the Middle East, and Africa at JPMorgan Chase & Co., said global financial institutions had long anticipated a major capital markets event involving the Dangote Group.
“For decades, bankers have covered Dangote and have been hoping for a capital markets event across the group, so this was a very long time coming,” Weiler said.
He explained that the group deliberately chose a private placement structure to attract long-term strategic investors capable of supporting future fundraising efforts across multiple Dangote businesses.
According to him, the selected investors could become “core investors” for future capital market transactions involving the group. Bloomberg data showed that the fertiliser bond, issued slightly over two weeks ago, had already appreciated in value and was trading at about 101.7 cents on the dollar.
Financial analysts said the successful bond issuance and proposed London listing could open a new chapter for Nigerian industrial firms seeking direct access to international capital markets.
They noted that stronger global investor participation could lower financing costs for large African manufacturers and accelerate industrial expansion across the continent.