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Just a week after a Forbes revised valuation of his Dangote Fertilizer plant boosted his fortune, Africa’s richest man Aliko Dangote further solidified his financial dominion with a $1.5-billion net worth surge in a single day.
The impressive surge in his fortune over the past 24 hours, has seen his net worth increase from $15.5 billion to $17 billion, thus cementing his spot not only as Africa’s richest man but as the wealthiest Black person in the world. He also ranks 103rd among the world’s richest billionaires.
Fueling this rapid ascent is the stellar performance of Dangote’s 86-percent stake in cement behemoth Dangote Cement Plc. This year, the company’s shares have skyrocketed over 68 percent, propelling the market value of his holdings beyond $9.1 billion.
This roaring cement rally overshadows the earlier bump from Dangote Fertilizer’s reassessment, highlighting the pivotal role of Dangote Cement in Dangote’s success. With a $17-billion fortune according to Forbes, his position as the richest man on the continent appears unwavering.
Dangote Cement’s bullish strategy: A critical player in Africa’s housing revolution
Dangote Cement is mixing a potent cocktail of expansion and export, stirring up investor interest as the continent grapples with a housing deficit. With an annual capacity already at 55 million tonnes, the company is pouring concrete foundations for a new 6-million-tonne plant in Ogun State, Nigeria, earmarked solely for exports.
This bullish move coincides with a strategic bet by Nigerian billionaire Femi Otedola, chairman of Geregu Power and director of FBN Holdings. Otedola, the country’s fourth-richest man, sees Dangote Cement as a prime mover in plugging Africa’s housing gap, particularly in Nigeria, where the government and private players scramble to deliver affordable housing units.
Otedola’s optimism is fueled by the undeniable need for Africa. In Sub-Saharan Africa, the housing deficit is estimated at 50 million units and continues to grow as populations urbanize. Dangote’s export ambitions, however, suggest a broader vision. The company aims to become a dominant player in the regional construction scene, supplying vital materials to a continent where infrastructure and housing needs are immense.
Dangote’s sweet success: Surge in Dangote Sugar and NASCON Allied boosts portfolio
While his cement empire remains the cornerstone of his fortune, Dangote is seeing sweet returns from other corners of his sprawling portfolio. Dangote Sugar Refinery and NASCON Allied Industries, his sugar, and salt ventures, have surged 39 percent and 31 percent, respectively, reflecting a broader market rally and boosting his stakes in the companies to over $800 million and $130 million, respectively.
These sugary gains come on top of an already impressive year for Dangote, whose 86-percent stake in Dangote Cement has been the primary driver of his wealth increase. Even his minority holdings in Jaiz Bank and United Bank for Africa haven’t been slouches, experiencing significant growth in 2023.
The bullish market sentiment has propelled Dangote’s sugar and salt businesses to new heights, solidifying his dominance in these essential consumer goods sectors. With his 72.7-percent stake in Dangote Sugar Refinery now exceeding $800 million, the aroma of further upside hangs heavy in the air. Meanwhile, his 66.5-percent stake in NASCON Allied, worth more than $130 million, adds a savory spice to his diversified portfolio.
