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South African billionaire Johan Rupert has reclaimed his position as Africa’s richest man, overtaking Nigerian industrialist Aliko Dangote.
According to the Bloomberg Billionaires Index, Rupert’s net worth now stands at $14.3 billion, surpassing Dangote’s $13.4 billion.
Rupert, the chairman of Richemont, a global luxury goods conglomerate, has gained $1.87 billion this year, while Dangote has suffered a $1.69 billion loss.
The significant drop in Dangote’s net worth is primarily attributed to Nigeria’s challenging macroeconomic conditions. His conglomerate, the Dangote Group, has been particularly affected by the depreciation of the Nigerian naira, which has lost over 43% of its value this year.
Currency turmoil knocks Dangote down
The currency’s decline, driven by President Bola Tinubu’s partial removal of fuel subsidies and relaxed currency controls, has severely impacted Dangote’s wealth, which is heavily tied to naira-denominated assets.
“Dangote Industries Limited (DIL) reported a substantial foreign exchange loss of $1.07 billion in 2023,” a company spokesperson revealed, highlighting the challenges faced by the group.
Additionally, production delays at Dangote’s refinery and a downgrade by Fitch Ratings have compounded the company’s difficulties.
Despite these setbacks, Dangote remains optimistic about the future. He outlined a strategic pivot to reduce the group’s reliance on the Central Bank of Nigeria for currency supply and diversify revenue streams.
“By 2025, we aim for 90% of our revenue to come from foreign exchange earnings,” Dangote stated, emphasizing the group’s commitment to international expansion.
As Rupert reclaims the top spot, Dangote’s focus on foreign exchange earnings could be crucial in navigating Nigeria’s ongoing economic volatility.