UPDATE: South African Billionaire, Johan Rupert Reclaims Title as Africa’s Richest Overtaking Aliko Dangote

South African billionaire Johan Rupert has once again ascended to the pinnacle of Africa’s wealth rankings, surpassing Nigeria’s industrial titan, Aliko Dangote, to reclaim the title of Africa’s richest man.

Rupert, who chairs the luxury goods conglomerate Richemont, now boasts a net worth of $14.3 billion, according to the latest data from the Bloomberg Billionaires Index. This places him ahead of Dangote, whose fortune has dwindled to $13.4 billion.

The shift in fortunes is stark. While Rupert has seen his wealth swell by $1.87 billion this year, Dangote has suffered a loss of approximately $1.69 billion. The Nigerian billionaire’s financial setback is primarily tied to the challenging macroeconomic conditions in Nigeria, where his sprawling business empire, the Dangote Group, is heavily invested.

The depreciation of the Nigerian naira has been a major blow to Dangote’s wealth, especially as his conglomerate grapples with setbacks at its refinery due to production delays and other industrial hurdles. The naira, one of Africa’s worst-performing currencies this year, has lost over 43% of its value, exacerbating Dangote’s financial woes.

Since President Bola Tinubu’s administration partially lifted fuel subsidies and relaxed currency controls in a bid to attract foreign investment, the naira’s value has plummeted by about 70%, further eroding Dangote’s assets, which are largely tied to the local currency.

Just two weeks ago, Dangote was ranked the 145th richest person in the world by Bloomberg. However, his current standing has dropped to the 160th position, marking a significant decline.

THE BIGGER PICTURE:

Rupert’s resurgence comes on the heels of a volatile period for African billionaires. Last year, he was named Africa’s richest man by Forbes following a significant devaluation of the naira and a shift to a free-floating exchange rate, which took a heavy toll on Dangote’s wealth. The Dangote Group, already burdened by supply chain issues and production delays at its Nigerian refinery, has also faced a credit downgrade by Fitch Ratings, further complicating its financial outlook.

Despite these challenges, Dangote remains undeterred. The Dangote Group is charting a bold course to generate approximately $30 billion in revenue by 2025, with a renewed focus on expanding its influence in the foreign exchange market.

As part of this strategy, Dangote has announced plans to reduce his stake in the cement business from 75% to 15% and to diversify the group’s earnings, aiming for a balanced revenue stream where 50% comes from foreign sources.

By 2025, the Dangote Group envisions that 90% of its revenue will be derived from foreign exchange earnings, signaling a strategic shift towards international markets amidst Nigeria’s ongoing economic volatility. Despite the current setbacks, Dangote’s ambitions remain expansive, underscoring his commitment to maintaining a dominant presence on the global stage.