Nigerian billionaire and Africa's richest man, Aliko Dangote, is now
Africa's first $20 billion man and one of the top 25 richest men in the
world.
The President/Chief Executive of the pan-African conglomerate, the
Dangote Group, has become the first African entrepreneur to lay claim to
a $20 billion fortune as the stock value of his flagship holding,
Dangote Cement, leaped just about three-fourths since March when Forbes
last released its yearly ranking of the world's richest people.
With a current market cap of $20.5 billion, Dangote Cement becomes the
first Nigerian company to achieve a market capitalisation of over $20
billion. The global business and financial intelligence news magazine,
Forbes, reported that Dangote's 93 per cent stake in the cement company
is now worth $19.5 billion.
Added to this are his controlling stakes in other public-listed
companies like Dangote Sugar and National Salt Company of Nigeria, and
his significant shareholdings in other blue chips like Zenith Bank, UBA
Group and Dangote Flour.
He equally has extensive real estate portfolio, jets, yachts and current
cash position, which includes over $300 million in recently-awarded
Dangote Cement, which puts his current worth at over $20 billion.
With his fortune, Dangote is richer than Russia's richest man, Alisher
Usmanov, India's Lakshmi Mittal and running neck and neck with India's
Mukesh Ambani. He is also catching up on such Americans as Google's
billionaire founders, Larry Page and Sergey Brin.
Dangote Cement had recorded an unprecedented surge in share price
largely due to market response to its impressive results in the first
quarter of this year. Its unaudited results for the three months ending
March 31 showed that the company's pre-tax profit rose to $339 million,
representing an 80.6 per cent increase from last year and a strong
indicator of the company's future earning potential.
The results also indicate a 79.5 per cent rise in its earnings per share
over the corresponding period last year. While Forbes reasoned that
other companies might eventually achieve this, it noted but it would
take a bit of time. Dangote Cement currently accounts for over a quarter
of the total market capitalization of the Nigerian Stock Exchange
(NSE).
The second largest company on the NSE is currently West Africa's largest
manufacturer of alcoholic and non-alcoholic beverages, Nigerian
Breweries, with a market cap of $8.5 billion.
Dangote debuted on Forbes' billionaires list in 2008 with a fortune at
$3.3 billion, which dropped to $2.5 billion in 2009 and plunged further
to $2.1 billion in 2010.
This, however, surged 557 per cent in 2011 to $13.8 billion after he
took Dangote Cement public. He dropped to $11.2 billion in last year's
rankings, but rebounded at $16.1 billion this year. Since March, his
fortune has jumped another 30 per cent.
Forbes believes that Dangote still has bigger ambitions, as he
reportedly told the magazine's Wealth Editor, Luisa Kroll, at Davos in
2011 that he expected his firm to have a market cap of $60 billion
within five years.