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South Africa’s richest man Johann Rupert has seen his net worth slump by more than $1 billion since the start of 2022, as investors priced in the impact of Russia’s invasion of Ukraine on financial assets, a geopolitical crisis that threatens a wider economic fallout.
According to data gathered by Billionaires.Africa, Rupert has lost $1.23 billion since the start of 2022. His net worth was $11.93 billion at the opening of business and trading in January.
The billion-dollar drop in his fortune can be attributed to a decline in the market value of his shareholding in his Swiss Luxury good holdings, Compagnie Financiere Richemont S.A, as investors sold their stakes in the company, causing the market value of its shares to fall.
Despite the fact that Russia and Ukraine have no luxury production, Russia accounts for around five percent of the luxury market due to the country’s high-spending customers.
Experts believe the knock on effect of the Russia-Ukraine crisis will be limited to an indirect impact on high-end customers, as feel-good “luxury” purchasing will be punctured in the short term.
Richemont shares are down more than 19 percent as a result of the stock market’s gloomy mood, and this comes after Richemont and other luxury players reported returns to pre-pandemic levels by the end of 2021.
The double-digit percentage decline in Richemont shares caused Rupert’s net worth to fall by more than 10.3 percent, or $1.23 billion, from $11.93 billion at the start of business this year to $10.7 billion at the time of writing this article.
Despite a $1.23-billion drop in his net worth, Rupert remains South Africa’s richest man, with a net worth of $11.93 billion.
His share in the luxury goods manufacturer Richemont is currently valued at $7.6 billion on the market.
