Africa’s richest man sees $163 million wiped from wealth on cement slump

After a rebound that lifted his fortune by $200 million from late August to early September, Africa’s richest man, Aliko Dangote, has seen part of those gains erased. His net worth has dropped by $163 million over the past four days, trimming back the boost from a stronger naira and gains tied to his cement holdings.

Figures from the Bloomberg Billionaires Index, which tracks the wealth of the world’s 500 richest people, show Dangote, 68, chairman and founder of Dangote Group, now holds an estimated fortune of $28.8 billion. That is down from nearly $29 billion on Sept. 11.

Dangote net worth slips with cement shares

The drop narrows his year-to-date wealth increase to $687 million from $850 million recorded earlier this month. At that point, Bloomberg’s estimates had marked a $250 million rise in his fortune, driven by a firmer naira and a rebound in Dangote Cement’s stock after its dip in mid-August.

The $163 million decline stems mainly from a sell-off in Dangote Cement, Africa’s largest cement producer, where he owns an 87.45 percent stake. The stock fell more than 3 percent in four days, sliding from N528 ($0.35) at market open on Sept. 11 to N511.2 ($0.34) this morning, giving the cement giant a market capitalization of $5.6 billion on the Nigerian Exchange.

Historic U.S. shipment from Dangote refinery

Dangote’s reach extends beyond cement, sugar, and food. His $20 billion petroleum refinery, which began operations last year, is changing the energy equation in Africa while also drawing global attention. Earlier this month, the refinery made its first shipment of gasoline to the United States, a milestone for Nigeria’s oil industry and for Dangote’s ambitions abroad.

About 300,000 barrels left its jetty near Lagos on Aug. 26 aboard the vessel Gemini Pearl, according to shipping data from Kpler and industry sources. It was the first time Nigeria exported gasoline directly to the U.S., a sharp shift from its past role of selling crude while depending on imports to meet domestic fuel demand.

The 650,000-barrel-a-day plant is gradually reducing that dependence. Since June, it has shipped cargoes to the Middle East and Asia, signaling its capacity to compete outside Africa. The U.S. deal comes as fuel inventories on the Atlantic Coast tighten and prices climb, creating openings for suppliers overseas.

Middle East turns to Dangote refinery

The refinery has also ramped up exports of petrol, diesel, and jet fuel, helping fill shortfalls left by refinery outages in Saudi Arabia and Kuwait. That has drawn in Middle Eastern buyers who once rarely looked to Nigeria for refined products but are now turning increasingly to Dangote’s facility.