Aliko Dangote, Africa’s second-richest man, is rapidly regaining his previous wealth losses as his fortune recently rebounded, once again surpassing the $10-billion mark.
The surge in his net worth can be attributed to a remarkable $575-million increase in the past 24 hours, representing a 5.82-percent uptick in a single day.
According to Forbes, a leading U.S. business magazine that tracks the wealth of ultra-high-net-worth individuals worldwide, Dangote’s net worth in the past 24 hours has escalated from $9.9 billion to $10.5 billion at the time of reporting.
The resurgence in Dangote’s net worth is largely attributed to a 10-percent surge in the shares of his cement company, Dangote Cement Plc, on the Nigerian Exchange.
The upward trajectory has propelled the market value of his 86 percent stake in Dangote Cement to more than $6.2 billion.
The recent increase comes as a much-needed relief following a sustained decline in his fortune, prompted by the devaluation of the Nigerian naira, which adversely affected the value of his extensive industrial assets and companies, including his 86-percent stake in Dangote Cement, Africa’s largest cement manufacturer.
With the recent bump in his fortune, Dangote, who was displaced as Africa’s richest man by South African billionaire Johann Rupert on June 16, is now inching closer to reclaiming that title.
At the time of writing, the wealth gap between Dangote and fellow African billionaire Johann Rupert – who is currently worth $11.6 billion – presently stands at $1.1 billion, and it is expected to decrease further as Dangote Cement initiates a share buyback program.
The share buyback program was approved by shareholders during the Extraordinary General Meeting held in December and aims to repurchase shares worth N50.6 billion ($65.8 million), equivalent to one percent of the company’s issued shares.
The first tranche of the share buyback program is set to be completed within two trading days, starting from Mon., July 17, 2023, to Tues., July 18, 2023, or until the entire tranche size has been purchased, whichever occurs earlier.
With Dangote Cement’s share buyback program in motion, Dangote’s chances of regaining his position as Africa’s richest man are steadily increasing.
As the gap between him and Rupert narrows, Africa’s billionaire landscape is bracing for a potential shift in rankings, awaiting the outcome of the share buyback initiative.