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Investment Corp of Dubai eyes more business with Africa’s Dangote

DUBAI (Reuters) – Investment Corporation of Dubai (ICD) is exploring further investment opportunities with African conglomerate Dangote Group, the chief executive of the emirate’s fund said on Wednesday.

ICD, which hold stakes in many of Dubai’s top companies including Emirates airline and Emaar Properties, bought a 1.4 percent stake in Dangote Cement last month for $300 million.

“We have been looking at Africa for a long time. We are looking to do more business with Mr. Dangote and we have some things that we are exploring at the moment together,” Mohammed al-Shaibani told an Africa-focussed investment event in Dubai.

Shaibani was speaking alongside Aliko Dangote, head of the Dangote Group and Africa’s richest man.

When asked about what sectors ICD would be interested in investing in with Dangote Group, Shaibani said it was focussing on agriculture and infrastructure projects.

Gulf companies are increasingly looking at Africa as an investment destination, as firms use cash generated by their rich, hydrocarbon-dominated economies to expand into a continent where many countries are experiencing high levels of growth.

This compares with Western nations, where money from Gulf sovereign wealth funds have traditionally been deployed, which are still struggling with anaemic growth rates.

Last month, Qatar National Bank bought in two stages a 23.5 percent stake in pan-Africa lender Ecobank, its second acquisition on the continent in the last two years.

Meanwhile, Emirates Global Aluminium is developing a $5 billion refinery and bauxite mine in Guinea to help it secure the raw materials it needs for its expanded operations in the United Arab Emirates.

First Published: 2014-10-01 10:32:00
Updated 2014-10-01 10:52:17

Published by Reuters
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Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.

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Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.

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MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.

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Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.

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