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Anonymous
Asked: 2026-09-16T21:03:21+00:00 In:

Long term consideration of investment in stocks and economy

I’m curious about investing in Dangote’s Ipo or the Burkina faso economy, which could yield a good return over time.

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1 Answer

  2. Salami Ridwon

    Investing in DANGOTE IPO and the economy of Burkina Faso is a different case. For DANGOTE IPO, do look at it as an angle of investing alone. The important question isn't simply "Is Dangote Refinery a good company?" It's "At ₦525, am I buying the company cheaply enough relative to its future cash genRead more

    Investing in DANGOTE IPO and the economy of Burkina Faso is a different case.

    For DANGOTE IPO, do look at it as an angle of investing alone.
    The important question isn’t simply “Is Dangote Refinery a good company?” It’s “At ₦525, am I buying the company cheaply enough relative to its future cash generation?”
    That’s where I’d want to examine the prospectus carefully: earnings, debt, refining margins, crude supply, capacity utilisation, taxes, FX exposure, capital expenditure and the valuation relative to projected free cash flow.

    DANGOTE could potentially have a good return with if the proposed expansion and operation went well. And know it isn’t a get rich quick.

    For Burkina economy, A country’s economy can grow rapidly without the average investor necessarily making a high return.
    You need a mechanism through which you actually capture that growth listed companies, bonds, mining companies, private businesses, infrastructure, currency exposure, etc. Burkina Faso is also exposed to substantial security, commodity-price and political risks. The IMF specifically identifies security conditions and commodity/energy shocks as downside risks

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