Dangote loses over US$1 billion in single day as investors book profit

His net worth fell below the $20-billion mark on Thurs., Dec. 9, due to a decline in the market value of his stake in his flagship company, Dangote Cement Plc.

Dangote, who is the wealthiest Black man alive, saw his net worth surge to a record high of $20.3 billion in November for the first time in seven years. The billionaire amassed the majority of his wealth from his 86-percent stake in Dangote Cement, Africa’s largest cement maker.

Data gathered by Billionaires.Africa revealed that his net worth at the opening of business and trading December 9 2021, was estimated at $20.1 billion.

A new wave of sell-offs on the Nigerian Exchange spiked by profit-taking and portfolio-rotation activities by investors pressured Dangote Cement shares to a share price of N252 ($0.613), 10-percent lower than the opening price of N280 ($0.681) per share yesterday morning.

As a result of the double-digit decline in the share price of the leading cement maker and a 10-percent slump in the market value of his stake in the group, Dangote’s net worth fell by $1.01 billion, or five percent, to $19.1 billion.

Despite the billion-dollar slump in his wealth, Dangote remains the richest man in Africa and the wealthiest Black man alive.

His net worth gains lag behind the wealth increase of South African billionaire Johann Rupert, who has recorded a more than $4-billion increase in his net worth since the start of the year.

Since the year began, Dangote’s cement business has reported revenue of N1.022 trillion ($2.49 billion), up from the revenue of N761.44 billion ($1.85 billion) reported in the corresponding period of 2020, and a profit of N278.3 billion ($677.6 million) compared to the N208.7 billion ($508.1 million) in profit that was posted last year.

His salt- and sugar-processing businesses have also posted profits of N2.42 billion ($5.9 million) and N15.51 billion ($37.7 million) since the beginning of the year, respectively.

His present $19.1-billion net worth makes him the richest Black man alive and the 100th wealthiest man in the world.