After gaining $1.9 billion in the first five months of 2022, Africa’s richest man Aliko Dangote has seen his net worth fall by $2 billion in the past three months due to a protracted slide in the share price of his flagship company, Dangote Cement Plc.
Dangote, who derives the majority of his net worth from his 86-percent stake in Dangote Cement, joins a long list of African billionaires whose wealth has declined noticeably in the past quarter, including Johann Rupert, Patrice Motsepe, Strive Masiyiwa, and Mohammed Al-Amoudi.
According to the Bloomberg Billionaires Index, Dangote’s net worth has fallen by $2 billion in the past three months, from $21 billion on May 30 to $19 billion at the time of writing this report, making him now the 75th richest man in the world, down from the 65th spot earlier this year.
The $2-billion drop in his net worth can be attributed to the sustained decline in the market value of his 86-percent stake in Dangote Cement, as market participants continue to sell down their stakes amid fears of an economic downturn and a decline in the real return on financial assets.
Dangote Cement shares have declined by more than 18 percent since May, falling from N300 (0.7085) per share to N245 ($0.5786) as investors continue to sell down their stakes in the leading cement manufacturer after it reported a double-digit drop in earnings in the first half of 2022.
According to the group’s recently published financial results, its profit decreased by more than 10 percent in the first half of 2022 from N191.63 billion ($460.8 million) to N172.1 billion ($413.8 million).
Dangote Cement’s earnings were hit by an increase in selling and distribution expenses, as well as a jump in direct production costs driven by energy costs, in addition to an unrealized foreign currency loss of N40.66 billion ($97.8 million).