“DANGOTE – AFRICA’S RICHEST MAN’S NET WORTH HITS $15.3 BILLION”
Aliko Dangote, Africa’s wealthiest individual, has amassed a net worth totaling $15.3 billion, as per data compiled from the Bloomberg Billionaire Index.
Dangote’s fortune has experienced a remarkable surge, coinciding with the resurgence of the Nigerian naira in both official and unofficial markets.
Previously, Dangote encountered a turbulent period, witnessing a substantial decline in his net worth to below $13.5 billion earlier this month, indicating a loss of several billion dollars within weeks.
However, Dangote’s wealth has undergone a revival, attributed to the recent strengthening of the naira. The appreciation of the naira against the US dollar has garnered praise from investors and market observers, instilling renewed confidence in the local economy.
The recent clearing of all foreign currency backlog by the Central Bank of Nigeria (CBN) has contributed to the steady appreciation of the naira, which has gained more than 4% against the dollar, trading below N1400/$.
Analysts from Goldman Sachs Group Inc., Citigroup Inc., and Standard Chartered Plc anticipate a potential appreciation of the naira by up to 25% against the dollar this year, owing to significant interest rate hikes and other measures aimed at attracting foreign capital.
Since June, when President Bola Tinubu abolished Nigeria’s long-standing practice of exchange rate manipulation, coupled with other measures to attract foreign investment and bolster the economy, the value of the naira has depreciated only twice.
Investors are showing confidence in Dangote Cement, the highly valued company of the billionaire family, despite facing challenges such as price wars, inflation, and currency crises.
Dangote Cement recorded a 36% increase in sales year-over-year, amounting to $1.44 billion last year. The company’s profit after taxes saw a 19% increase, reaching $300 million. Additionally, Dangote Cement gained market share in Africa, with pan-African volumes rising by 13% to 11.3 metric tons. Currently, Dangote Cement’s stock has risen by 114.7%.
Aliko Dangote plans to establish an oil trading company, potentially headquartered in London, to oversee the supply of crude and other commodities for his new refinery in Nigeria. This move aims to reduce reliance on major trading companies.
With its massive 650,000 barrel-per-day refinery, Dangote’s refinery is poised to impact global oil and gasoline flows, attracting close attention from the trading community.
In support of the Federal Government’s Palliative Program to combat hunger and ensure food security for Nigerians, Dangote announced the distribution of one million ten-kg rice bags across Nigeria. The Dangote Group reportedly spent N5 billion to secure these rice bags for distribution. The distribution commenced in Lagos and Kano State, Dangote’s hometown.
Source: Adetunji Tobi, Techeconomy.
