Africa’s wealthiest individual, Aliko Dangote, has experienced a significant financial setback. His net worth has plummeted by an astounding $8.7 billion, falling below the $15 billion mark. This decline is a sharp contrast to the peak of his wealth, which soared above $23 billion at the end of January 2023, according to the Bloomberg Billionaires Index.
The primary reasons for this dramatic drop in Dangote’s net worth are twofold: the recent devaluation of the Nigerian naira and a decline in the share price of his flagship company, Dangote Cement Plc. As the largest cement producer in Sub-Saharan Africa, Dangote Cement experienced a significant pullback on the Nigerian Exchange, contributing to the overall decline in Dangote’s fortunes.
The recent devaluation of the Nigerian currency is part of a broader strategy to streamline the country’s multiple exchange rate system and attract investment to support its struggling economy. This move aligns with market-friendly reforms introduced by Nigerian President Bola Tinubu in June 2023, aiming to discard the longstanding peg that artificially maintained the currency’s high value.
The impact on Dangote’s other investments
Beyond Dangote Cement, the market values of Aliko Dangote’s stakes in Dangote Sugar Refinery and NASCON Allied Industries have also seen substantial declines. His 72.7-percent stake in Dangote Sugar Refinery is now valued at $330 million, down from over $770 million in January. Similarly, his 66.5-percent stake in NASCON Allied has dropped to $58.4 million from over $120 million.
Despite these financial setbacks, Aliko Dangote remains one of the world’s wealthiest individuals, currently ranking as the 135th richest individual globally, according to the Bloomberg Billionaires Index. His fortune is derived primarily from an 86.6-percent stake in Dangote Cement Plc and a substantial contribution from his fertilizer plant, boasting an annual production capacity of 55 million tonnes of cement and 2.8 million tonnes of urea, respectively.
The recent loss of $8.7 billion in Aliko Dangote’s net worth serves as a stark reminder of the volatility of the global economy and the interconnectedness of currency value, market performance, and individual wealth. Despite this setback, Dangote’s diversified portfolio and significant contributions to Africa’s industrial sector continue to position him as a key figure in the global economic landscape.
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