Connect with us

Hot News

African billionaire heirs are making their mark in philanthropy

The progeny of some of Africas’s wealthiest people are putting in more of their time to giving and impacting.

Published

on

Tsitsi Mutendi, co-founder of African Family Firms.

For many years philanthropy and Africa have been marred by the images of poor African children, starvation and refugees fleeing war-torn zones. However, if you live on the continent, you will know that it’s a vibrant and colorful place that has its challenges like all geographic locations. Some of the images that have plagued Africa have been real, but they do not tell the holistic story.

As the world has evolved, so has Africa. With a lot more homegrown wealth and an increase in millionaires and billionaires on the continent, we have seen the introduction of African foundations created and led by African families, African family offices and African family businesses. Africa has one of the fastest-growing markets of high net-worth individuals, and many of these individuals are becoming entrenched in sustainable philanthropy.

You may ask, “Where is this money coming from?”

According to a report authored by AfrAsia bank in 2021, the total private wealth held in Africa was standing at $2 trillion as of December 2020. In addition to this homegrown wealth, according to the World Bank, Africa diaspora remittances being sent home were about $48 billion in 2020.

With all this money being found on the continent in its various forms, we are beginning to see African giving becoming the norm and pushed forward by the spirit of Ubuntu.

Ubuntu (Zulu pronunciation: [ùɓúntʼù]) is a Nguni Bantu term meaning, “humanity.” It is sometimes translated as, “I am because we are.” Ubuntu is essentially about togetherness and how all of our actions impact others and society.

In Africa, this culture and way of life permeates to everyday gestures in the course of life. In the past, it applied to family, friends and community members, but now we are seeing it expand to a broader audience and in various ways. African philanthropists are looking towards impact and addressing issues they experienced or their communities experience in a way that changes the narrative and creates opportunities for their recipients.

Most notable about the giving is that the conversation is not only being led by the African founders or matriarchs and patriarchs, but next-gens are also equally putting in their weight and names to giving and impacting. Some of the notable next-gen givers are:

  • Florence “Cuppy” Otedola, and the Cuppy Foundation. Cuppy is the daughter of billionaire Femi Otedola. The Cuppy Foundation tackles child protection and education issues for girls and persons with disabilities (minorities). Cuppy has spearheaded several initiatives, such as her “Cuppy Takes Africa” tour in 2015 in partnership with Guarantee Trust Bank and the Dangote Foundation. She has also personally paid for multiple students to go to university in Nigeria and worked with various organisations such as the Global Citizen, Royal Commonwealth Society, and the Save The Children Initiative, where she raised over $13 million.
  • Elizabeth Tanya Masiyiwa, the daughter of Strive and Tsitsi Masiyiwa, is an executive director at Delta Philanthropies. Delta Philanthropies is a UK-registered charity founded by the Masiyiwa family and governed under the UK Charity Commission. Its strategic pillars include education, health, rural transformation and sustainable livelihoods, disaster relief and preparedness. Its impact has seen millions of dollars being put into creating a difference, and according to their website, it has impacted over 15 million people and counting.
  • Halima Aliko Dangote is a trustee for the Dangote Foundation. The foundation has become the largest private foundation in Sub-Saharan Africa, with the largest endowment by a single African donor. The foundation is interested in health, education, empowerment and humanitarian relief.
  • Naguib, Samih and Nassef Sawiris all sit on the Sawiris Foundation for Social Development board, a charity that provides microcredit to Egyptian entrepreneurs and grants scholarships to outstanding Egyptian students in tertiary institutions. 
  • A most notable next-gen founder and philanthropist is Mohammed Dewji. The Tanzanian billionaire joined the Giving Pledge, promising to give away at least half of his wealth to philanthropic causes. Dewji’s Mo Dewji Foundation focuses on three areas: health, education, and community development. Over five years, the Mo Dewji Foundation has spent more than $3 million in grants and other forms of funding for community service projects, supporting schools, hospitals and wells.

As we can now see, philanthropy is no longer just a buzzword. The global pandemic has highlighted why philanthropy is essential, especially when people are left marginalised. And Africa’s families have heeded the call and put their charitable giving to use. Next-gens being the key to continued giving, when they actively participate and lead the charge, they start exploring sustainable solutions in regions they are familiar with and communities they live amongst. It’s well worth seeing how the next-gens will drive the philanthropic future of the continent.

Through this work, we will see the values and vision of the various financial leaders of the continent and the future stewards of their wealth.

Tsitsi Mutendi is a co-founder of African Family Firms, an organization that aims to facilitate the continuity of African family businesses across generations. She is also the lead consultant at Nhaka Legacy Planning and the host of the Enterprising Families Podcast.

Hot News

Led by Egypt’s richest family, Orascom Construction sees profit drop 43.1 percent in Q1 2022

Nassef Sawiris owns 28.97 percent of the multinational construction group, or 33,825,323 shares.

Published

on

Nassef Sawiris.

Despite reporting a double-digit percent increase in profit in 2021 due to improved collections and liquidity management, Orascom Construction reported a profit of $15.3 million at the end of the first six months of 2021.

Orascom Construction is Egypt’s richest family-founded multinational engineering and construction corporation.

The leading engineering and construction behemoth reported a profit of $15.3 million in the first quarter of 2022, down more than 43.1 percent from the $26.9 million in profit reported in the first quarter of 2021, according to recently published financial results.

Despite a 20-percent increase in revenue from $816.6 million to $979.9 million, the group’s earnings power was hampered by a surge in direct costs above $880 million, combined with an increase in operating expenses during the period under review.

Osama Bishai, CEO of Orascom Construction, commented on the financial performance, saying: “We indicated in the previous quarter that we expected to experience challenges associated with the changing global economic environment.”

“As always, we continue to prioritize project controls, cost optimization, supply chain, and collections. Our new awards strategy is also unchanged as we continue to focus on high-quality projects across our geographies in sectors in which we are competitive,” he said.

The group was able to keep its project backlog at $5.5 billion by awarding $617.5 million in new contracts during the first quarter of 2022.

Despite the depreciation of the Egyptian pound, the backlog is consistent with the level achieved a year ago, as it was supported by high-profile infrastructure projects in Egypt denominated in foreign currency, as well as projects in other markets in the Middle East, Africa and the United States.

As part of its commitment to shareholders, the board proposed a $27-million dividend distribution to be paid in the third quarter of 2022. This is the group’s fifth consecutive year of dividend payments.

Orascom Construction is a leading global engineering and construction contractor, with active operations and investments in the Middle East, Africa, and the United States.

Egypt’s richest man Nassef Sawiris owns 28.97 percent of the group, or 33,825,323 ordinary shares, while OS Private Trust Company owns 51.8 percent of the Egypt-based contractor for the benefit of the Sawiris family.

Continue Reading

Hot News

South African billionaire Patrice Motsepe, wife join world leaders at 2022 WEF Annual Meeting in Davos, Switzerland

Motsepe is a member of the WEF Board of Trustees.

Published

on

South African billionaire Patrice Motsepe. ©Billionaires.Africa

South African billionaire mining mogul Patrice Motsepe and his wife Precious Moloi-Motsepe have been confirmed as two of the 35 South African business representatives who will attend an event at the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, tomorrow, which is partially dedicated to promoting South Africa as an attractive investment destination.

The event, “Preparing for Africa’s Growing Global Role,” was developed in partnership with the South African Broadcasting Corp.

The 2022 WEF Annual Meeting, which runs from May 22 to 26, is convening at the most consequential geopolitical and geo-economic moment in the past three decades against the backdrop of a once-in-a-century pandemic, COVID-19, and the continuing Russia-Ukraine conflict.

Motsepe and his wife, a renowned medical practitioner, join South African Human Settlements, Water and Sanitation Minister Mmamoloko Kubayi, Finance Minister Enoch Godongwana and International Relations and Cooperation Minister Naledi Pandor as top representatives who will offer ideas about how to support the UN Sustainable Development Goals, particularly in Africa.

Other South African business leaders who will attend the WEF Annual Meeting this week include: Leila Fourie, group CEO of the Johannesburg Stock Exchange; Rene Parker, CEO of RLabs; Nicola Galombik, executive director of Yellowwood; and, Bronwyn Nielsen, founder and CEO of Nielsen Media and Associates.

According to a statement issued by the South African government, the event will also provide an opportunity for the government to share an update on South Africa’s economic reconstruction and recovery plan, promote the country’s economic reforms, and advance critical public-private partnerships to support its development goals.

Just last weekend, Motsepe, a member of the WEF Board of Trustees, passed Zimbabwean billionaire Strive Masiyiwa to re-emerge as Southern Africa’s richest Black businessman.

According to Forbes, Motsepe is back on top as Southern Africa’s richest Black billionaire, with a net worth of $3.1 billion as of press time on May 21, while Masiyiwa’s net worth has dropped to $2.7 billion.

Motsepe’s net worth has increased from $2.9 billion at the start of the year to $3.1 billion at the time of writing, owing to a 6.1-percent increase in the share price of African Rainbow Minerals, the South African mining and minerals company that he founded in 1997.

In addition to other assignments at this year’s WEF Annual Meeting, the billionaire will also speak on, “Sport as a Unifying Force,” alongside Emir of Qatar Sheikh Tamim bin Hamad Al Thani, WEF Founder and Executive Chairman Klaus Schwab, and FIFA President Gianni Infantino.

Continue Reading

East Africa

Kenyan businessman John Kimani receives $1.2 million in dividends from agro-allied firm, Kakuzi

Kimani owns a 32.3-percent stake in Kenyan agricultural company.

Published

on

Kenyan businessman John Kimani.

Despite a double-digit decline in the profit of Kenya-based agro-allied company Kakuzi in 2021, Kenyan businessman and leading media mogul John Kimani was paid a dividend of Ksh139.3 million ($1.2 million) from his stake in the agricultural firm on Friday.

Kimani, one of the Nairobi Securities Exchange’s wealthiest investors, owns a 32.3-percent stake in Kakuzi, He also controls substantial equity positions in Centum Investments and Nation Media Group.

The $1.2-million dividend, which was paid into Kimani’s bank account on Fri., May 20, following shareholder approval at the group’s annual general meeting, was paid from the Ksh431-million ($3.7-million) payout approved by the company’s board based on its 2021 financial results.

At the end of 2021, Kakuzi’s board of directors proposed paying its shareholders a dividend of Ksh22 ($0.189) per share, a 22-percent increase from the Ksh18 ($0.154) per share paid last year, despite reporting a 48.6-percent drop in earnings from Ksh622.03 million ($5.43 million) in 2020 to Ksh319.74 million ($2.8 million).

The company’s 8.7-percent drop in revenue from Ksh3.61 billion ($31.5 million) to Ksh3.29 billion ($28.7 million) caused the earnings to decline, which did not prevent the company from increasing its dividend payout by 22 percent.

Kakuzi Chairman Nicholas Ng’ang’a assured shareholders that strategic plans had been activated to accelerate and enhance returns by diversifying the variety of produce delivered to domestic and global markets in an effort to reward shareholders with an even higher dividend payout in the coming years.

“We are part of a global marketplace and the products we produce often face stiff competition from producers in other countries. We, therefore, embarked on a very significant diversification program several years ago to ensure that Kakuzi is not dependent on any one crop,” Ng’ang’a said.

Continue Reading

Trending