According to the Bloomberg Billionaires Index, South African billionaire Johan Rupert has dethroned Nigerian entrepreneur Aliko Dangote as the richest person in Africa. Rupert’s net worth stands at $14.3 billion, surpassing Dangote’s $13.4 billion.
Rupert earned $1.87 billion this year, while Dangote incurred a loss of $1.69 billion. Dangote’s decline is mainly attributed to Nigeria’s deteriorating macroeconomic environment, where his business, the Dangote Group, is based.
The Nigerian naira depreciated by over 43% this year, exacerbating issues with Dangote’s wealth, which is concentrated on naira-denominated assets. Since President Bola Tinubu took office, the naira has lost about 70% due to partial removal of fuel subsidies and relaxation of currency controls.
Dangote Industries Limited reported a significant foreign exchange loss of $1.07 billion in 2023, aggravating supply chain problems at its Nigerian refinery. Despite these challenges, the Dangote Group aims to generate $30 billion in revenue within five years by expanding its footprint in foreign exchange markets.
Aliko Dangote has made it clear that his company needs to cut down on its dependence on the Central Bank of Nigeria for currency supply, diversify income sources, and reduce his stake in the cement business. By 2025, most of Dangote Group’s revenue will come from foreign earnings, thus stressing on global presence amidst Nigeria’s economic turmoil.
