Dangote
Aliko Dangote

Dangote makes it to World’s 100 richest people list

NEWS DIGEST – Aliko Dangote, Africa’s richest man, has made it to the list of 100 richest people in the world.

According to the Bloomberg Billionaires Index, Mr Dangote’s name appeared as the number 96th after becoming $4.3 billion richer in 2019 with earnings from cement, flour and sugar

The 62 years old business mogul ended the decade with a net worth of almost $15 billion, making him the 96th wealthiest man on earth.

The report disclosed that the majority of Dangote’s fortune is derived from his 85% stake in publicly traded Dangote Cement.

He holds the shares in the company directly and through his conglomerate, Dangote Industries.

Dangote’s other publicly traded assets include stakes in Dangote Sugar, Nascon Allied Industries, Dangote Flour Mills and United Bank for Africa.

His stakes in the publicly traded companies are held directly and through Dangote Industries, which also owns closely held businesses in beverage manufacturing, fertilizer and oil.

His most valuable closely held asset is a fertilizer plant with capacity to produce up to 2.8 million tonnes of urea annually.

It’s net value is based on a discounted cash flow analysis by KPMG. The valuation was confirmed by outside analysts.

A $12 billion oil refinery that is currently being developed in Nigeria isn’t included in the valuation because it’s not yet operational and construction costs are calculated to outweigh its current value.

The billionaire owns six residential and commercial properties in Lagos. They are valued using the capitalization method, using rental income provided by Dangote’s spokesman, Anthony Chiejina, and capitalization rates from CBRE Broll Nigeria.

His cash holdings are based on an analysis of dividends, taxes, insider transactions and other expenditures.

Dangote’s net worth calculation was updated on Feb. 26, 2019, to include the equity value of the fertilizer plant and other closely held assets.

The change resulted in a $6 billion gain in his fortune on that date.