Johan Rupert reclaims Africa’s richest title as Dangote loses over $1bn

Rupert Surpasses Dangote in Wealth Rankings Amid Economic Challenges in Nigeria

According to the latest Bloomberg Billionaires Index, Johann Rupert, chairman of the global luxury goods conglomerate Richemont, has seen his net worth rise to $14.3 billion, overtaking Aliko Dangote, whose fortune now stands at $13.4 billion.

This year, Rupert has gained $1.87 billion, while Dangote has faced a significant $1.69 billion loss, largely due to the difficult macroeconomic conditions in Nigeria. The depreciation of the Nigerian naira, which has lost over 43% of its value in 2023, has hit Dangote's conglomerate, the Dangote Group, particularly hard.

Currency Depreciation Hits Dangote’s Wealth

The sharp decline in the naira's value, triggered by President Bola Tinubu’s partial removal of fuel subsidies and relaxed currency controls, has severely impacted Dangote’s wealth, which is largely tied to naira-denominated assets.

Dangote Industries Limited (DIL) reported a substantial foreign exchange loss of $1.07 billion this year, underscoring the challenges the group faces. In addition, production delays at Dangote’s refinery and a recent downgrade by Fitch Ratings have compounded the company's difficulties.

Looking Ahead: Dangote’s Strategic Shift

Despite these setbacks, Dangote remains optimistic. He has announced a strategic shift to reduce the group’s dependence on the Central Bank of Nigeria for currency supply and to diversify its revenue streams.

“By 2025, we aim for 90% of our revenue to come from foreign exchange earnings,” Dangote stated, highlighting the company’s commitment to international expansion.

As Rupert regains the top spot among African billionaires, Dangote’s focus on foreign exchange earnings could be crucial in navigating the ongoing economic challenges in Nigeria.