In a significant shift after 12 years, Aliko Dangote, the Nigerian cement tycoon, has been dethroned as Africa's richest person. According to Forbes' calculations, Johann Rupert from South Africa has taken the top spot. Rupert, who made his fortune in luxury goods and other industries, surpassed Dangote on June 15. As of June 21, Forbes' Real-Time Billionaires ranking estimates Rupert's net worth at $11.7 billion, making him the new wealthiest individual in Africa. This marks the first time Rupert has claimed the title, although he has been listed as a billionaire by Forbes since at least 1997. Dangote, 66, now stands in second place with a fortune of $10.4 billion, experiencing a significant drop from his previous net worth of $14.1 billion on June 14.
The decline in Dangote's wealth coincides with the Central Bank of Nigeria's decision to float the country's currency, the naira, on June 14. This move involved abandoning the fixed exchange rate with the U.S. dollar. Subsequently, the naira plummeted approximately 40% against the U.S. dollar on June 16, reaching a low of N690 to the U.S. dollar on June 20.
The majority of Dangote's wealth is tied to his 85% ownership of Dangote Cement, the largest cement producer in Africa, which is a publicly listed company. Since the central bank's decision to float the currency, Dangote Cement's shares have seen a marginal 1% increase. However, the sharp devaluation of the naira outweighed this slight rise, leading to the decline in Dangote's fortune.
The new top earner in Africa, Johann Rupert, serves as the chairman of Compagnie Financière Richemont, a luxury goods powerhouse based in Switzerland. Richemont owns renowned brands such as Cartier, Montblanc, and Van Cleef & Arpels. Rupert founded Richemont in 1988, separating the international assets from The Rembrandt Group, a conglomerate established by his father in the 1940s. Additionally, Rupert is the chairman of Remgro, an investment holding company in South Africa with diverse investments in banking, healthcare, and media companies. He also holds a stake in the Saracens English rugby team. Rupert's biggest regret is reportedly missing the opportunity to acquire 50% of Gucci decades ago for only $175 million.
Rupert's net worth has risen by nearly $3 billion since early 2022 and has more than doubled since early 2020 when Forbes estimated it at $4.6 billion.
The decision of the Nigerian Central Bank to float the naira is part of President Bola Tinubu's broader efforts to attract investment to Nigeria and curb the profits made by black market operators through the discrepancy between official and unofficial financial markets. Tinubu assumed office in May and has been leading an economic overhaul in Nigeria, which includes the abolishment of fuel subsidies that have been in place since the 1970s.
According to Nimi Wariboko, a former investment banker and strategic consultant at Nigeria's Central Bank, Dangote might be able to leverage Tinubu's removal of state fuel subsidies to his advantage through the recent launch of his company's new oil refinery in Lagos. The refinery, built at a reported cost of $19 billion, aims to address Nigeria's fuel shortages since the country has been unable to refine domestically extracted oil. Wariboko suggests that this venture could allow Dangote to regain his position as Africa's wealthiest individual.
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