Dangote acquires shares in Afreximbank

The Dangote Group has become the latest corporate organisation to join the African Export-Import Bank as a class B shareholder.

The Group, according to information released by Afreximbank and made available to our correspondent, completed the process of acquiring equity in the bank on May 30 this year with a “substantial investment.”

Afreximbank is an international financial institution, headquartered in Cairo, Egypt, whose primary objective is to promote and finance trade within the African continent and trade between Africa and other continents.

Welcoming the investment of Dangote Group, President of Afreximbank, Dr. Benedict Oramah, stated that it was “a strong vote of confidence in the bank by, arguably, the largest indigenous corporate organisation in Africa.”

“The massive investment the Dangote Group is making across Africa makes it a partner of choice in the delivery of our intra-African trade strategy. Working with the Dangote Group, we will build supply chain financing across Africa that could reach $1bn in the short term, promoting intra-regional trade and growth of short and medium enterprises, and creating much needed jobs,” Oramah said.

The President, Dangote Group, Aliko Dangote, said, “I consider Afreximbank as a good vehicle for fostering regional integration in Africa, which aligns with our vision and mission for growth and development across the continent.”

Afreximbank has four classes of shareholders divided into A, B, C and D, which are made up of a mix of African governments, central banks, regional and sub-regional institutions, private investors, African and non-African financial institutions, export credit agencies and non-African private investors.

Class “A” shareholders are African states, central banks and public institutions, including the African Development Bank; while Class “B” is made up of the continent’s financial institutions and private investors.

Class “C” shares are held by non-African investors, mostly international banks and export credit agencies, including Standard Chartered Bank, HSBC, Citibank, China Exim Bank and Exim India. Class “D” shares, a tier approved in December 2012, are fully paid par value shares that can be held by any investor.

Oramah described Dangote as an enigma who was assiduously working towards the unification, growth and development of the African continent.