South Africa is making fresh efforts to strengthen economic relations with Nigeria, with renewed interest in attracting the Dangote Petroleum Refinery to the Johannesburg Stock Exchange (JSE) as part of a broader strategy to deepen investment cooperation between Africa's two largest economies.
The move comes despite years of diplomatic strain caused by recurring xenophobic attacks against Nigerians and other African nationals living in South Africa.
Officials and market stakeholders believe stronger commercial partnerships could help rebuild confidence between both countries while promoting regional economic integration through cross-border investments.
According to the JSE, discussions have taken place with the Dangote Group, with indications that the refinery has a "strong intent" to pursue a South African listing after completing its planned Initial Public Offering (IPO) on the Nigerian Exchange (NGX).
The planned IPO is expected to be one of the largest capital market transactions in Africa, with reports indicating that the refinery aims to raise about $5 billion to support expansion projects and strengthen its position as a major supplier of refined petroleum products across the continent.
The 650,000-barrel-per-day Dangote Refinery, located in Lagos, has become one of Africa's most significant industrial projects since commencing operations. The facility has substantially increased local refining capacity, reduced Nigeria's dependence on imported fuel and expanded exports to several African and international markets.
South Africa's renewed economic outreach is viewed by analysts as an opportunity to reset bilateral relations that have periodically suffered setbacks following violent attacks targeting foreign nationals, including Nigerians.
Successive Nigerian governments have repeatedly condemned xenophobic violence and called on South African authorities to ensure the safety of Nigerians residing and doing business in the country.
Despite those tensions, trade and investment links between both countries have remained significant, with businesses operating across sectors including banking, telecommunications, manufacturing, retail and energy.
Market experts say attracting a company of Dangote Refinery's scale would enhance the JSE's profile while giving South African institutional and retail investors greater access to one of Africa's most valuable industrial assets.
The development also aligns with broader continental efforts to deepen African capital markets by encouraging cross-border listings and improving investment flows among African economies.
Earlier this year, the Nigerian Exchange Group convened several leading African stock exchanges, including the JSE, to explore mechanisms for expanding participation in the refinery's anticipated public offering and strengthening regional market integration.
Aliko Dangote has consistently described the refinery's planned public listing as an opportunity to democratise wealth creation and allow Africans to participate directly in the continent's industrial transformation.
Economic observers believe closer collaboration between Nigeria and South Africa could boost investor confidence, facilitate greater capital mobilisation and support implementation of the African Continental Free Trade Area (AfCFTA).
However, they caution that sustained progress will depend on addressing longstanding diplomatic concerns, particularly the protection of foreign nationals and businesses operating across borders.
For many investors, a potential JSE listing would represent more than a financial transaction. It would signal renewed confidence in Africa's largest economies working together despite previous political and social disagreements.
Business leaders have also called for stronger cooperation in energy, infrastructure, manufacturing and financial services, arguing that collaboration between Nigeria and South Africa is essential to accelerating economic growth across the continent.
Nigeria and South Africa account for a substantial share of Africa's economic output. Stronger investment ties between both nations could encourage cross-border capital flows, strengthen regional financial markets and create new opportunities for businesses and investors. A future JSE listing of Dangote Refinery would also mark a significant milestone in African capital market integration while testing the resilience of economic diplomacy amid lingering xenophobia concerns.
South Africa's push to attract the Dangote Refinery to the Johannesburg Stock Exchange reflects a broader effort to rebuild economic relations with Nigeria despite past diplomatic tensions. If successful, the initiative could strengthen investor confidence, deepen African financial market integration and reinforce the growing role of intra-African investment in driving the continent's industrial and economic transformation.