Aliko Dangote’s networth dwindled in the first quarter of this year after his fortune dropped to $16.4 billion.
The decline occurred when the founder invested heavily in the oil industry and fertilizers business.
Dangote‘s wealth lost $1.4 billion between January and March 2021, this is according to the Bloomberg Billionaire Index. The founder of Dangote Group had started this year with $17.8 billion.
But the networth started declining, causing a 7.9 percent reduction in his fortune. Despite this drop, the billionaire still remains the richest man in Africa and the wealthiest black man in the world.
As of Wednesday, March 31, 2021, Dangote’s wealth was placed at $16.4 billion.
While this might not significantly threaten his position in Africa, on the world stage, there are billionaires breathing down his neck and aiming for his position.
Dangote had topped the list for multiple decades. The decline recorded in the first three months of this year is linked to the fall in the share value of the companies he owns.
Why Dangote’s networth declined in 2021 first quarter
His core investment is the cement and sugar businesses. The cement is Dangote’s most lucrative venture, as it has the highest market capitalisation and turnover when compared to other enterprises in his investment portfolio.
Dangote Cement stock price began the year with N244.9kobo. However, that value crashed within the three months under review to N215, affecting the market value of the company in which the billionaire owns more stake.
Also, his second biggest company, sugar business kicked off the year with N17.60kobo per share, but dropped to N17 per share as capital investors priced the stock low, affecting the company’s total market value.
The decline in both the cement and the sugar business was caused by profit-taking among shareholders cashing in on the rise of the stock last year. The massive sell-off pushed the stock price down, and simultaneously dragged Dangote’s wealth down.
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