ICYMI: Unstoppable Dangote keeps Africa on the global billionaires map

MyNigeria Feature

The wealth of Africa's richest man and serial entrepreneur, Aliko Dangote, seems to be on the ascendancy after global media company, Forbes, ranked him as the richest man on the continent.

In its 2022 ranking released on Tuesday, January 25, 2022, Forbes, in its report revealed that Dangote is worth $13.9 billion raking in more than $9 billion between 2021 and now. According to Forbes’ 2021 ranking, he was worth $12.1 billion.

Dangote owes his latest growth to a 30 percent increase in the stock price of Dangote Cement, his most valuable asset in the past year.

The figure represents a 15% rise in his revenue as he continues to grow and establish his operations in 15 African countries including: Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania and Zambia.

Dangote topped the 2021 billionaires list that included 18 other billionaires from the continent. According to Forbes, as a group, the continent’s 18 billionaires are worth an estimated $84.9 billion – 15% more than twelve months ago and the largest combined tally since 2014.

In this year’s ranking, South Africa and Egypt have the most billionaires with five each, while Nigeria settled with three – Aliko Dangote, Chairman of the BUA Group, Abdulsamad Rabiu and Chairman of Globacom, Mike Adenuga.

Forbes said it used stock prices and currency exchange rates from January 19, 2022, to measure the net worth. The report added that Aliko Dangote is for the 11th consecutive time occupying the first position of the continent’s richest persons.

How did he get here?

Aliko Dangote’s grandfather who he had borrowed $500,000 as capital to start his business was a successful trader of rice and oats in Kano, one of Nigeria’s largest cities.

He began trading in sweets at a young age for sale until he started making profits. He later ventured into commodities such as bagged cement and agricultural goods like rice and sugar.

Currently, Aliko Dangote is the founder and chairman of Dangote Cement, the largest producer of cement on the continent. Dangote Cement produces 48.6 million metric tons of cement annually with Dangote owning 85% of publicly-traded Dangote Cement through a holding company.

After several months of speculation, Dangote’s Urea Fertilizer finally began operations in mid-2021 and has added quite a few millions to his kitty. Speaking to the press over the weekend, Group Executive Director (Strategy, Capital Projects & Portfolio Development) of Dangote Industries Limited, Devakumar Edwin, revealed to the press that the plant, which has the capacity to turn out more than 4,500 tonnes of urea per day, will conveniently meet the local demand and even produce for exports.

According to him: "...We have the capacity to turn out 4,500 tonnes of urea everyday... this is a bulk application fertilizer...each crop in Nigeria or globally will require Nitrogen and this is a rich fertilizer, having 46 percent nitrogen...The company has the capacity to meet local demand and also export to African countries...

"Currently the demand is less than 1 million tonnes and we alone can produce 3 million tonnes, so we can easily meet local demand and also produce for export to other west African countries."

How did Dangote rank on the billionaires list globally?

For Aliko Dangote, his dominance on the continent has been extended to the global billionaires ranking. We take a closer look at how well he has performed on the global list from 2014 to date.

In 2014, the business tycoon had arguably one of his best years. According to Forbes in February 2014, Dangote’s fortune hit an all-time high of $25 billion. That year he was ranked 29th on the global billionaires list. Forbes said he hit the high figure due to the soaring value of the stock price of his publicly-listed Dangote Cement.

In 2015, Dangote’s fortunes dropped by $10 billion as a result of the valuation of the Naira, the country’s currency at the time. Amongst 1,826 billionaires on Forbes’ annual ranking, Dangote was ranked 67th.

He ranked 51st in 2016, 100th in 2017 maintaining his position in 2018 and 2019. 2020 saw a significant leap as he emerged the 64th richest person in the world with an estimated worth of $16.6 billion.

Dangote’s worth dropped to $12.1 billion in 2021 which placed him at 191st position.

This article was written by Novieku Babatunde Adeola