Dangote back as Africa’s richest man as Forbes adds billion-dollar fertilizer plant to fortune

Surpassing South African billionaire Johann Rupert, Aliko Dangote, the prominent Nigerian billionaire and chairman of the Dangote Group — Africa’s leading diversified manufacturing conglomerate — has once again become the continent’s wealthiest individual, according to Forbes.

The reassessment includes the incorporation of his billion-dollar fertilizer plant, catapulting Dangote’s net worth to $14.6 billion. This surpasses the previous leader, South African billionaire Johann Rupert, currently valued at $9.9 billion, as per Forbes’ recent data.

The disparity in wealth assessments between Forbes and Bloomberg, a longstanding concern, has notably diminished. Forbes’ decision to factor in the valuation of the Dangote Fertilizer Plant, described as the continent’s largest granulated urea fertilizer complex, has played a pivotal role in this convergence.

Dangote Fertilizer Plant’s impact on wealth, Forbes vs. Bloomberg perspectives

The Dangote Fertilizer Plant, launched in March 2022, was conceived as part of an ambitious initiative to meet Nigeria’s 1.5-million-tonne annual fertilizer demand, reduce prices, and combat food insecurity. This strategic move not only addresses a critical national need but has also altered the dynamics of Dangote’s wealth ranking on the continent.

Forbes values the mega-fertilizer plant at $4.8 billion — applying an additional 10-percent discount. While Bloomberg, using a discounted cash flow analysis by KPMG — a valuation confirmed by external analysts — incorporates a $5.15-billion valuation in its calculations.

Dangote’s expanding empire: Beyond fertilizers, a diverse portfolio fuels his soaring wealth

Dangote’s growing wealth isn’t just from the new fertilizer plant. His broad investment portfolio has been a key contributor. With a 72.7-percent stake in Dangote Sugar Refinery, a 66.5-percent stake in NASCON Allied Plc, and an 86 percent ownership in his flagship company, Dangote Cement, these holdings have played a crucial role in his net worth surge.

His stakes in Dangote Sugar Refinery and NASCON Allied Plc are valued at $618 million and $103 million, respectively. Meanwhile, Dangote’s substantial stake in Dangote Cement, Africa’s largest cement manufacturing company, is estimated at $5.75 billion.

While Forbes’ reassessment has placed Dangote back at the zenith of Africa’s wealthiest, Bloomberg’s estimation still positions him marginally higher at $15.2 billion. This underscores the nuances in wealth valuation methodologies but solidifies Dangote’s standing as the richest man on the African continent.