Post Published on August 28, 2024 by Anthony Ekata
Johan Rupert, the South African billionaire and chairman of Richemont, the luxury goods conglomerate, which owns brands like Cartier and Montblanc, has dislodged Aliko Dangote as Africa’s richest man.
This follows a decline in the Nigerian industrialist and owner of the Dangote Group’s net worth by over one billion dollars ($1bn).
Empirical data
According to the latest data from the Bloomberg Billionaires Index, Rupert’s net worth now stands at $14.3 billion, surpassing Dangote’s $13.4 billion. Year-to-date, Rupert has gained $1.87 billion, while Dangote has lost approximately $1.69 billion.
Nicky Oppenheimer, another South African billionaire, was ranked the third richest person in Africa with a net worth of $11.3bn, followed by Nassef Sawiris, an Egyptian businessman, with a fortune of $9.48bn.
South African investor Natie Kirsh completed the top five African billionaires list with $9.22 bn.
Dangote’s losses are largely attributable to Nigeria’s challenging macroeconomic environment, where his conglomerate primarily operates.
The Dangote Group has faced setbacks at its 20-billion-dollar refinery due to production delays and other industrial issues. It has also been impacted by the Nigerian naira’s steep fall.
Global ranking
Dangote was listed by Forbes magazine in January as Africa’s richest man for the 13th year in a row despite the country’s economic difficulties. But the latest Bloomberg index places him second in Africa and 159th globally.
The depreciation of the Nigerian currency severely impacted Dangote, whose wealth is heavily tied to naira-denominated assets.
Naira crash
The naira has lost over 43% of its value this year alone, making it one of the worst-performing currencies in Africa. Since President Bola Tinubu took office and partially lifted fuel subsidies while relaxing currency controls to attract foreign investment, the naira has depreciated by about 70%. This has significantly affected Dangote’s net asset value, given his exposure to the local currency.
Dangote Industries Limited (DIL) reported a substantial foreign exchange loss of $1.07 billion in 2023. In addition to existing supply chain issues at its Nigerian refinery, the company has also suffered from a recent downgrade by Fitch Ratings. Despite these challenges, the Dangote Group has ambitious plans to generate roughly $30 billion in revenue by 2025, focusing on expanding its influence in the foreign exchange market.
Watch Mr Rupert share some business success tips in this VIDEO
NP/BBC/eNCA
