Forbes attributed the growth in the net worth of those listed to Femi Otedola’s strategic moves in Nigeria’s energy sector. In 2013, he divested from oil investments, using a Forte subsidiary to acquire the Geregu power generation plant during the government’s push to privatize the country’s energy business.
Initially, he held a 90% stake, but by 2022, after listing on the Nigerian exchange, he sold shares to institutional investors. These investors include Afreximbank’s Fund for Export Development in Africa and the State Grid Corporation of China. Otedola’s current 73% stake in Geregu is valued at over $850 million, constituting three-quarters of his $1.1 billion fortune, ranking him 20th on the list.
“After taking Otedola’s comeback into account, Africa’s billionaires dipped slightly, but still fared better than the decline of four per cent last year, when African markets faded in sync with equity values around the world. This year, African equities joined a late-year global rally, with the S&P All Africa index rising 10 per cent in the final two months of 2023 but still ended down more than 9% in the 12 months through January 8, 2024.”
Following Dangote was Johann Rupert from South Africa ($10.1B), followed by his compatriot Nicky Oppenheimer ($9.4B), Egypt’s Nassef Sawiris ($8.7B), Nigeria’s Mike Adenuga ($6.9B), and his compatriot Abdulsamad Rabiu ($5.9B).
South Africa secured six spots, Egypt five, and Nigeria four. Morocco had 2 billionaires followed by Algeria, Tanzania, and Zimbabwe with one billionaire each.
Forbes stated that Africa “remains one of the world’s toughest places to build and hold onto – a billion-dollar fortune, as global investors remain leery of its stock exchanges, businesses struggle against strained economies, poor infrastructure and volatile exchange rates, while changing political winds can make, boost or bust private fortunes”.
Quoting Charles Robertson, head of macro strategy at asset manager FIM Partners, the Forbes report stated that African entrepreneurs often face limited access to capital and populations with little disposable income to invest in new companies or the stock market.
A turbulent 2023 also made African equities less attractive for foreign investors.
“You’ve got two negatives for investors. Weakening domestic [currencies], which is pushing up inflation, and tax rises, which is hurting the companies they’re investing in,” says Robertson. […] That environment favours entrenched family fortunes or those with close ties to government that continue to dominate the ranks of Africa’s richest.”
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