The Dangote Refinery’s $1.6 billion initial public offering has highlighted the operational and regulatory barriers that can complicate retail investment across African markets.
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The offer, which comprises 4.1 billion shares priced at ₦525 each, was structured primarily for investors in Nigeria. That meant Zimbabwean investors could not access the same direct, app-based route available to domestic applicants.
A regulated route for Zimbabwean investors
Bard Santner Investors (BSI) created a permitted cross-border process for Zimbabweans seeking to participate. The arrangement required exchange-control approval, supporting documents, cross-border bank transfers and nominee arrangements.
Ngoni Chikowore, BSI’s head of asset management, said the investment was treated as an offshore transaction in both Nigeria and Zimbabwe. Client funds were transferred through Ecobank Zimbabwe to Ecobank Nigeria, while Ecobank Nominees submitted the IPO application.
“When we transfer the funds, we are transferring them through the banking sector through Ecobank Zimbabwe to Ecobank Nigeria, so we have evidence or a claim to say we have participated,” Chikowore said.
BSI’s process had a minimum investment of $20,000, substantially higher than the smaller minimum available to domestic Nigerian applicants. At the reported time, BSI was processing applications manually because online applications could not be completed.
“So far, because of the time, we couldn’t do online applications. We are doing it more manually,” Chikowore said.
He also identified a potential risk before allotment, saying: “The only risk is if maybe before allotment.” The available information does not establish whether all applications submitted through BSI will receive shares or whether any funds were ultimately affected.
Demand strains Nigerian investment platforms
The IPO also tested the capacity of digital investment services in Nigeria as retail demand increased. Bamboo reported adding more than 236,000 accounts in the week before the offer, including 152,000 accounts that were funded and trading.
Richmond Bassey, Bamboo’s chief executive, said traffic during the first 30 minutes exceeded 10 times normal levels. The platform had expected traffic of four to five times its usual level and had prepared capacity for up to 10 times normal traffic.
Bamboo and Cowrywise experienced service problems when the IPO opened. Cowrywise’s service was slow for about an hour before being restored. Bassey said several critical processes depended on third-party providers, including one-time passwords, account creation, password resets, deposits and know-your-customer checks.
Delays and repeated attempts placed additional pressure on those systems. The reported disruption was linked to traffic, capacity constraints and third-party dependencies; no cyberattack or security breach was reported.
Chikowore said the platform difficulties did not ultimately derail BSI’s process because the funds moved through the banking system and the transfers provided evidence of participation.
A wider test for African capital markets
The offer was marketed to investors across Africa and became a high-profile test of efforts to expand retail participation in the continent’s capital markets. It also showed that digital access alone cannot remove the need for regulatory approvals, banking channels, brokers, exchanges and nominee arrangements.
The OECD Africa Capital Markets Report 2025 counted 1,141 listed companies across African exchanges, compared with roughly 44,000 globally. African companies accounted for about 1% of global equity capital raised since 2000, while South Africa, Morocco and Egypt represented 80% of Africa’s market capitalisation.
Regional initiatives such as the African Exchanges Linkage Project and the Pan-African Payment and Settlement System are intended to improve market connectivity and payments. However, the Dangote offer demonstrated that individual investment platforms and intermediaries must still manage their own capacity, third-party dependencies and communication during periods of intense demand.
The IPO was scheduled to close on October 13, with a listing expected in November. BSI said it hoped to automate its currently manual process as part of its longer-term plans.
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