Johan Rupert, the South African billionaire and chairman of the luxury goods company Richemont, has reclaimed his title as Africa’s richest man. This comes after Nigerian businessman Aliko Dangote, the owner of the Dangote Group, saw his net worth drop by over $1 billion.
According to the Bloomberg Billionaires Index, Rupert’s net worth now stands at $14.3 billion, surpassing Dangote’s $13.4 billion. So far this year, Rupert has gained $1.87 billion, while Dangote has lost about $1.69 billion.
Dangote’s financial decline is largely due to the challenging economic conditions in Nigeria, where his businesses are primarily based. The Dangote Group, which includes operations in cement, sugar, salt, and other sectors, has faced several issues recently. These include delays and problems at its refinery, as well as the steep decline of the Nigerian naira. The naira has lost over 43% of its value this year, making it one of Africa’s worst-performing currencies.
The economic situation in Nigeria has been particularly tough since President Bola Tinubu took office. Tinubu’s administration has made several policy changes, including partially removing fuel subsidies and easing currency controls to attract foreign investment. As a result, the naira has depreciated by about 70%, significantly affecting Dangote’s wealth, which is largely tied to naira-denominated assets.
Last year, Rupert was named Africa’s richest man by Forbes after the Nigerian naira experienced a significant devaluation and a shift to a free-floating exchange rate. This currency crisis greatly impacted Dangote’s wealth.
In 2023, Dangote Industries Limited reported a foreign exchange loss of $1.07 billion. Besides the currency issues, the company has faced supply chain problems at its Nigerian refinery and a downgrade from Fitch Ratings, which has affected its financial standing.
Despite these challenges, the Dangote Group has ambitious plans for the future. The company aims to generate around $30 billion in revenue by 2025 by increasing its presence in the foreign exchange market and expanding its business operations outside Nigeria.
Aliko Dangote has outlined a strategic plan to help the Dangote Group recover from its current financial challenges. This includes reducing its reliance on the Central Bank of Nigeria for currency supplies and diversifying its sources of revenue. Dangote has also announced plans to reduce his stake in the cement business from 75% to 15%, aiming to achieve a more balanced mix of earnings from both local and foreign sources.
By 2025, the Dangote Group aims for 90% of its revenue to come from foreign exchange earnings. This strategy is designed to help the company better navigate Nigeria’s volatile economic environment and focus on international growth.
Johan Rupert’s rise to become Africa’s richest man again highlights the impact of economic conditions on the wealth of the continent’s billionaires. While Rupert has benefited from stable economic conditions in South Africa, Dangote’s wealth has been hit hard by Nigeria’s economic challenges. However, with new strategies in place, Dangote hopes to turn things around and reclaim his position as Africa’s wealthiest individual.
