South Africa’s richest man Johann Rupert’s net worth slumps by $1.05 billion

South African billionaire Johann Rupert’s net worth has dropped by more than $1 billion in the past 33 days, as shares in Swiss luxury goods holding Richemont continue to plunge.

The decrease in the company’s share price continues after its earlier announcement to sell down its stake in the loss-making Yoox Net-a-Porter (YNAP).

Rupert’s net worth has dropped by $1.05 billion in the past 26 days, from $10.2 billion on Aug. 11 to $9.15 billion, according to the Bloomberg Billionaires Index, as wary investors reduced their stakes in Richemont amid fears of a global economic downturn.

The drop in his net worth brings his year-to-date wealth loss to $2.79 billion, which is more than the yearly GDP of eight African countries, including The Gambia, Guinea-Bissau, Seychelles, and South Sudan.

The second-richest man in Africa behind cement billionaire Aliko Dangote, Rupert derives the majority of his wealth from his 9.14-percent stake in Richemont, a luxury goods business that controls a diverse portfolio of premium brands such as Chloe, Dunhill, Alaa, Cartier, and Delvaux.

The billion-dollar slump in his net worth in the past 26 days follows a dazzling $1.58-billion spike in his wealth from July 17 to Aug. 11, which was fueled by positive investor reactions to Richemont’s better-than-expected revenue numbers for Q1 2023.

Richemont shares have fallen by more than seven percent in the past month, from R200.11 ($11.7) to R185.77 ($10.86), extending the stock’s year-to-date loss to 21.92 percent, while the market value of Rupert’s 9.14-percent interest in the luxury goods business has dropped below $7 billion.

Two weeks ago, Richemont opted to sell a 50.7-percent stake in YNAP, an Italian online fashion retailer, to Farfetch and Emirati tycoon Mohamed Alabbar.

The decision marks a turning point in the debate over measures that could potentially boost Richemont’s valuation. it comes after more than 10 months of deliberation over whether to sell down stakes in the loss-making online store, which continues to incur losses on an annual basis.

Richemont would sell 47.5 percent and 3.2 percent of its YNAP holdings to Farfetch, a British-Portuguese online luxury garments retail platform, and Symphony Global, one of the investment firms owned by Alabbar, the man behind the Dubai Mall.