A recent rise in the share prices of Dangote Sugar Refinery Plc and Dangote Cement Plc has triggered a boost in the net worth of Africa’s wealthiest man Aliko Dangote by $700 million since June 1.
The billionaire, who holds an 86-percent stake in Dangote Cement, the largest cement company in Sub-Saharan Africa, also owns a substantial percentage in Nigeria’s largest sugar company, Dangote Sugar.
The Bloomberg Billionaire Index revealed that his wealth increased from $16.7 billion to $17.40 billion between June 1 and July 5. This translates to a net-worth gain of $700 million for the world’s richest black man in 34 days.
In January, Dangote’s net worth peaked to $18.4 million. However, he saw a slight decline in his net worth on May 7, as shares in Dangote Cement slid by 2.49 percent amid a sell off by investors.
Meanwhile, the $700-million growth in his net worth can be linked to the recent surge in the market price of his companies’ shares on the Nigerian Stock Exchange.
Data tracked on the Nigerian bourse revealed that shares in Dangote Cement have increased by more than 8 percent between June 1 and July 5, while shares in Dangote Sugar Refinery are up by 7 percent.
The increase in these companies’ share prices was driven by a bullish sentiment spiked by Dangote Cement and Dangote Sugar’s impressive performance in Q1 2021.
In Q1 2021, Dangote Cement reported a revenue of $810.32 million (N332.65 billion), or 34-percent higher than its revenue of $606.99 million (N249.18 billion) in Q1 last year. Its profits improved by 48 percent to $147.59 million (N60.59 billion).
Dangote Sugar, on the other hand, reported a profit of $20.22 million (N8.30 billion) in Q1 2021, or 30-percent higher than its profits in Q1 last year.
These results led investors to acquire more shares in the two companies in anticipation of impressive half-year results and a higher dividend from the companies’ profits at the end of 2021.
According to Bloomberg, Dangote’s $17.40-billion net worth makes him the 119th richest man globally and the wealthiest person in both Nigeria and Africa.
Dangote is also the richest black person internationally, a position he took from Ethiopia-born billionaire Mohammed Al-Amoudi in 2013.