Aliko Dangote loses US$702 million – Report

Dangote, the founder and chairman of Dangote Industries Limited, Africa’s most diversified manufacturing conglomerate, derives nearly half of his fortune from his 86-percent stake in Dangote Cement, the continent’s largest cement company.

According to data from the Bloomberg Billionaires Index, his net worth fell from $21 billion at the start of business on Tues., May 31, to $20.3 billion at the close of business, owing to a 6.7-percent drop in Dangote Cement shares as selling pressures on the local bourse among investors pushed the stock price of the cement company from N297 ($0.72) to N277 ($0.67) .

Dangote’s net worth fell by 3.4 percent, or $702 million, as a result of the cement maker’s share price decline. He is now ranked 71st, down from 65th on the Bloomberg Billionaires Index.

The decline in his fortune pared his year-to-date wealth gains to $1.18 billion from $1.88 billion.

Despite the recent decline in his net worth, Dangote remains the richest man in Africa, ahead of South African billionaire Johan Rupert, who is presently worth $9.71 billion.

Dangote has finalized a new $700-million local bond program to help fund the completion of his $19-billion integrated refinery and petrochemical plant.

The move comes after a flurry of media reports revealed that the Nigerian billionaire has exhausted all funding options for his 650,000-barrel-per-day integrated refinery project in the Lekki Free Zone near Lagos, Nigeria.

According to Fitch Ratings, the refinery project is still on track to be completed by 2023 and will require an additional $1.1 billion in capital expenditure, which will be partially funded by the new bond.