Fertilizer plant boosts Dangote’s net worth to $16.6bn

The richest man in Africa has become a whole lot richer, Bloomberg Billionaires Index shows, as Aliko Dangote’s net worth hit $16.6 billion, the highest level he has attained since 2015 when the business mogul was worth $18.3 billion around January of the year.

Worth an estimated $10.8 billion only Tuesday, 26 February, Dangote’s valuation spiked $5.81 billion or 53.6 per cent in a day as a new venture in Fertilizer adds significantly to his net worth. The Fertilizer plant capable of producing 2.8 million metric tons of urea a year, sits on more than 6,700 acres of land along the coastal line of southern Nigeria and has been valued at $5 billion.

Situated close to his $12 billion oil refinery, the factory is set to bolster ‘’ Dangote Industries’ annual revenue from $4 billion to about $30 billion, roughly 8 per cent of Nigeria’s gross domestic product’’

So far in the New Year, Aliko Dangote has grown his wealth by more than half its worth as the self-made sexagenarian plans to cement his legacy with the new businesses.

With the fertilizer business set to commence operations in a few months and the refinery near completion, analysts are very optimistic about the prospect of both the fertilizer and refinery business, as well as nurturing an expectation of improved foreign exchange inflow into the economy.

In recognition of the potential in Dangote’s recent enterprises, Godwin Emefiele, Governor of Nigeria’s Central Bank, earlier in the year announced that the Government had supported the project with N50 billion for the fertilizer plant and N75 billion for the refinery project.

Dangote’s shrewd business mind has seen his empire grow amid accusations of extreme capitalism and lobbying of the government.

Dangote Group, the largest conglomerate in West Africa and one of the biggest in Africa includes businesses in the Cement, Sugar, Salt, Steel, Flour and other aspects.

It was founded by Aliko Dangote in 1981 and currently employs more than 30,000 people, generating revenue in excess of US$4.1 billion in 2017 with over 18 subsidiaries, operating in ten African countries.

His cement business, the biggest subsidiary in the group, is both the Stock Markets most capitalized and the most dominant player in Nigeria’s Cement industry serving Nigeria N577 billion Cement industry.

Dangote Cement earlier in February, hired Guillaume Moyen as chief financial officer for operations ahead of it’s proposed listing on the London stock exchange later this year.

The move was a rekindling of a 2010 plan to sell shares in London which Dangote jettisoned even though a number of International Banks had put in efforts to raise as much as $5bn. Dangote’s net worth hit an all-time high in 2014 where it stood at $25 billion before declining by more than 50 per cent to $12 billion in early 2015.

His net worth thereafter in 2016 cycled in the $12-$15 billion range before it plunging further to an All-time low of some $9.7 billion in March of 2017.

Meanwhile Dangote Cement Plc on Wednesday reported net income of N390.33 billion in 2018 amidst Brian Egan’s resignation as the company’s Chief Financial Officer (CFO) effective Feb. 28.

Profit recorded by Africa’s largest cement maker represents a 91.1 percent increase when compared to N204.25 billion posted in the previous year.

Revenue was up 11.87 percent to N901.21 billion in the 2018 financial year from N805.58 billion a year earlier.

Despite the cost of goods rising to N383.31 billion from N351.29 billion, the cement manufacturer grew gross profit by 14 percent to N517.90 billion as against N454.29 achieved in 2017.

Dangote Cement’s shares remained unchanged at N192.50 after the close of business, Wednesday, at the Nigerian Stock Exchange, the stock has returned 1.48 percent since the start of the year.

 

Source: Business Day

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