Africa’s richest man loses $1.1 billion as Dangote Cement shares fall

Following a nearly $2-billion increase in his net worth in the first five months of 2022, Africa’s richest man Aliko Dangote has seen his net worth fall significantly in recent weeks, as his fortune continues to mirror the performance of the shares in his flagship company, Dangote Cement, Billionaire Africa reports.

According to data retrieved from the Bloomberg Billionaires Index, Dangote’s net worth has dropped by $1.1 billion in the past two months, from $21 billion at the close of business on May 23 to $19.9 billion at the time of writing this report.

The sharp decline in his net worth can be attributed to the recent decline in the Dangote Cement share price, as investors continue to cycle funds out of the cement maker’s shares after its stock price surged to an all-time high of N300 ($0.72) on the local bourse.

As a result of the sustained sell-off, Dangote Cement shares have fallen from an all-time high of N300 ($0.72) on May 23 to N265 ($64) at the close of the Nigerian Exchange on Fri., July 23, resulting in an 11.7-percent loss for shareholders over the past two months.

Despite the recent $1.1-billion drop in his net worth, Dangote’s net worth is still up by $832 million this year due to the year-to-date performance of his stake in Dangote Cement.

Dangote Cement, Africa’s largest cement manufacturer with a total capacity of 51.55 million tonnes of cement per year across 10 countries, is expected to publish its financial statement for the first half of 2022 on July 29.

In the first quarter of 2022, Dangote Cement reported a profit of N105.9 billion ($255 million), up 18 percent from the previous year, and group earnings before interest, taxation, depreciation, and amortization of N211 billion ($508 million), up 18.6 percent.

On the operational front, the group is ramping up production at its Okpella plant and is making sound progress toward establishing grinding plants in Ghana and Cote d’Ivoire.