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Dangote Emerged As the Only Nigerian On Bloomberg’s Top Billionaires’ List

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Africa’s richest man, Aliko Dangote, has significantly moved up in the World billionaires’ list as his fortune increased to $17.8 billion as against last year’s $14.8 billion to emerge as the only Nigerian in Bloomberg’s yearly top billionaire lists.

Other Africans on the list are three South Africans. They are Johann Rupert and his family, worth $10.1 billion; Nicky Oppenheimer with a worth of $7.80 billion and Natie Kirsh who is reputed to be worth $7.15 billion. Nassef Sawiris from Egypt is also among African billionaires with a worth of $6.93 billion.

The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. In calculating net worth, Bloomberg News strives to provide the most transparent calculations available, and each individual billionaire profile contains a detailed analysis of how that person’s fortune is tallied.

The index is a dynamic measure of personal wealth based on changes in markets, the economy and Bloomberg reporting. Each net worth figure is updated every business day after the close of trading in New York. Stakes in publicly traded companies are valued using the share’s most recent closing price. Valuations are converted to U.S. dollars at current exchange rates.

Dangote, who remains the richest man in Africa for the 8th year running, was the only Nigerian on the list of the top 120 billionaires, as released on Monday by Bloomberg in its yearly billionaires’ list.

Ellon Musk and Jeff Bezos are the richest in the world with $194 billion in their respective kitty while Bernard Arnault and Bill Gates followed respectively with $174 billion and $148 billion. Mark Zuckerberg was the fifth richest with $135 billion on the world’s billionaires’ chart.

Bloomberg is a global information and technology company, that connect decision makers to a dynamic network of data, people and ideas – “accurately delivering business and financial information, news and insights to customers around the world” Bloomberg L.P. provides financial software tools such as an analytics and equity trading platform, data services, and news to financial companies and organisations.

Dangote with his improved worth of $17.8 billion, controls Dangote Industries, a closely-held conglomerate. The Lagos, Nigeria-based company owns sub-Saharan Africa’s biggest cement producer, Dangote Cement. It also has interests in sugar, salt, fertilizer and packaged foods.

Aliko Dangote was also recently named as the sixth most charitable man in the World by Richtopia, a digital periodical that covers business, economics, and financial news, based in the United Kingdom. This recognition came after he endowed his foundation, the Aliko Dangote Foundation (ADF) to the tune of $1.25 billion.

Aliko Dangote started his Foundation in 1981, with a mission to enhance opportunities for social change through strategic investments that improve health and wellbeing, promote quality education, and broaden economic empowerment opportunities.

Aliko Dangote Foundation was, however, incorporated in 1994 as a charity in Lagos, Nigeria. Twenty years later, the Foundation has become the largest private Foundation in sub-Saharan Africa, with the largest endowment by a single African donor. The primary focus of the Aliko Dangote Foundation is health and nutrition, supported by wrap-around interventions in education, empowerment, and humanitarian relief.

Other Nigerian billionaires, including Mike Adenuga and Abdulsamad Rabiu, were missing on the list as their net worth fell short of American billionaire Buba Cathy, who placed 500th with a net worth of $5.83bn as estimated by Bloomberg.

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Dangote Reflects on Textile Sector Failures: Billionaire Lost Billions Before Achieving Success

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Aliko Dangote - Investors King

Behind every great success story lies an often-overlooked tale of struggle, missteps, and lessons learned.

Africa’s richest man, Aliko Dangote, recently shared his untold journey of failure and financial loss during a keynote speech at the 2024 Manufacturers Association of Nigeria (MAN) summit in Abuja.

According to Independent.ng, Dangote opened up about a chapter in his career that saw billions of naira lost in Nigeria’s once-thriving textile industry—a venture that, despite his best efforts, ended in closure and significant setbacks.

Dangote, the Chairman of Dangote Group and a global business icon, revealed that his foray into the textile industry in the 1960s did not go as planned.

Reflecting on the experience, he explained how his company, Dangote General Textile Mills, invested billions in two textile mills—one in Kano and the other being Nigeria Textile Mill, an enterprise originally set up for the Western Region by political leader Chief Obafemi Awolowo.

At a time when the Nigerian textile industry was booming, Dangote had high hopes for the success of these mills.

“We massively invested billions at that time,” Dangote said, recalling the scale of the operations. His company had bought out the foreign shareholders of the Nigeria Textile Mill, aiming to capitalize on the growth of the industry.

However, the boom didn’t last, and the lack of supportive government policies spelled doom for Dangote’s textile ventures.

Dangote explained that the government’s failure to protect the sector through consistent and effective policy decisions ultimately led to the collapse of both textile plants.

“We had to shut both the two factories,” he said, attributing the downfall to a combination of unfavorable conditions and a government that was unable to shield the industry from economic pressures.

The situation worsened when it came to paying the pensions and gratuities of employees who had been with the textile mills for decades.

Dangote noted that many of the workers had been employed for 25 to 30 years, creating a massive financial burden for the company.

Facing these enormous costs, he was forced to sell Liberty Merchant Bank, another one of his business ventures, to cover the debt. “Luckily for us, somebody came and said he wanted to buy our bank, Liberty Merchant Bank,” Dangote explained.

The sale of Liberty Merchant Bank brought in N1.2 billion, but this financial relief was short-lived. “After cashing out N1.2 billion, the industry consumed N985 million to pay pensions and gratuities just to get out of the business,” Dangote revealed.

The losses from the textile industry were devastating, leaving him to admit that his company had “burnt its fingers” in the process.

Despite encouragement from former President Olusegun Obasanjo to re-enter the textile industry years later, Dangote declined, citing the trauma of his previous experiences.

“I told him, ‘No, I will not go back there,’” Dangote said.

The billionaire’s candid recounting of these struggles serves as a reminder that even the most successful entrepreneurs face setbacks on their journey to success.

His willingness to share these hardships offers valuable insights for other aspiring business leaders, especially in emerging markets like Nigeria, where industries can be unpredictable, and policy shifts often complicate growth efforts.

Though the textile industry didn’t yield the results Dangote had hoped for, his resilience and ability to learn from failure allowed him to shift focus to other sectors.

Today, the Dangote Group is a leading conglomerate with investments spanning cement, sugar, salt, and petroleum, among others.

Dangote has solidified his place as one of Africa’s wealthiest men, a testament to his determination to succeed in adversity.

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Masayoshi Son Loses $2.6 Billion as SoftBank Shares Sink on BOJ Rate Hike

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Masayoshi Son

Masayoshi Son, the founder of SoftBank Group Corp., saw his fortune decrease by $2.6 billion in just two days as shares of his technology conglomerate plummeted.

The significant drop comes in the wake of an unexpected interest rate hike by the Bank of Japan (BOJ), which has sent shockwaves through the Japanese stock market.

SoftBank Shares Plunge

On Friday, SoftBank shares fell by 8% in Tokyo trading, capping a two-day decline of approximately 14%. This sharp drop in value has erased a substantial portion of the gains Son had accrued earlier in the year.

Despite this setback, Son’s net worth remains approximately $14 billion, still up from the $11.3 billion he started with at the beginning of the year, according to the Bloomberg Billionaires Index.

Impact of BOJ’s Policy Shift

The BOJ’s decision to raise interest rates sooner than anticipated has had a profound effect on Japanese stocks, particularly those in the technology sector. SoftBank, one of the world’s largest tech investors, has been significantly impacted.

The company had enjoyed a 46% increase in its stock price through the end of July, driven by its holdings in companies like chipmaker Arm Holdings Plc.

However, Arm’s shares dropped by 16% on Thursday after the company reaffirmed its annual sales forecast, disappointing investors who had hoped for more optimistic projections.

Economic and Market Repercussions

The broader Japanese market also suffered, experiencing its most significant drop since 2016. Investors reacted to the tighter monetary policy with a selloff, leading to widespread declines across various sectors.

SoftBank’s extensive international operations make it particularly vulnerable to currency fluctuations.

The yen strengthened to a four-month high on Thursday, following the BOJ’s hawkish stance, which added to the pressure on SoftBank’s stock.

Masayoshi Son’s Financial Position

Masayoshi Son, 66, remains the largest shareholder of SoftBank, which is valued at approximately $78 billion.

However, much of his stake is pledged as collateral for loans with various financial institutions. This arrangement heightens the financial risks for Son, especially during periods of market volatility.

SoftBank’s Performance and Future Prospects

SoftBank has been a major player in the technology investment space, with significant stakes in companies that are at the forefront of innovation, such as those involved in artificial intelligence.

The company’s future performance is likely to be closely watched by investors, particularly in light of the recent market turbulence and the BOJ’s policy changes.

Broader Economic Context

The BOJ’s interest rate hike is part of a broader effort to address economic challenges, including inflation and currency stabilization.

The impact of this policy shift on Japanese businesses and the global economy remains to be fully seen.

Analysts and investors are closely monitoring developments, particularly as they relate to major corporations like SoftBank.

The recent decline in SoftBank’s stock price and the resulting loss in Masayoshi Son’s wealth underscore the volatility and uncertainty in today’s financial markets.

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Warren Buffett Donates $5.3 Billion in Berkshire Shares to Charities

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Warren Buffett - Investors King

Renowned investor Warren Buffett has reaffirmed his commitment to philanthropy by donating $5.3 billion worth of Berkshire Hathaway shares to five charitable foundations.

The donations announced on Friday will see the Bill & Melinda Gates Foundation Trust receive the largest portion, totaling 9.93 million Class B shares of Berkshire Hathaway.

Also, the Susan Thompson Buffett Foundation will receive 993,035 shares, while the Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation will each benefit from 695,122 shares.

Buffett, approaching his 94th birthday in August, said his annual contributions first announced in a publication back in 2006 are important.

These shares represent a significant portion of Buffett’s holdings, with his remaining Class A stock valued at approximately $127 billion, constituting nearly 99.5% of his net worth.

Over the past 18 years, Buffett has maintained a steadfast commitment to his Berkshire holdings, refraining from both buying and selling Class A or B stock.

The impact of Buffett’s philanthropy extends far beyond these recent donations, as the five foundations have collectively received Berkshire Class B shares valued at approximately $55 billion since 2006.

This ongoing support has enabled these organizations to fund initiatives ranging from global health and education to poverty alleviation and community development.

As the Berkshire shares are transferred to the designated foundations, stakeholders anticipate a continuation of impactful programs and initiatives supported by Buffett’s generosity.

Moving forward, Buffett’s philanthropic efforts are expected to further inspire and catalyze global philanthropy, setting a precedent for strategic giving and leveraging financial resources for maximum societal benefit.

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