Dangote’s worth surges $9.2b in 2013, records highest gain in Africa

dangote

Dangote’s worth surges $9.2b in 2013, records highest gain in Africa
Aliko Dangote, Africa’s richest person and the President of Dangote Group,
one of the continent’s largest conglomerates is estimated to have added a
whopping $9.2 billion during 2013 outgone year. He remains the
30th-richest person in the world, according to Bloomberg, a global
financial intelligence.

While the widely respected media corroborated Forbes Africa, reporting
that the cement tycoon made the biggest profit in the African continent in
2013, however, it reported that Bill Gates, the founder and chairman of
Redmond, Washington-based Microsoft Corp., was the year’s biggest gainer
worldwide as the 58-year-old tycoon’s fortune increased by $15.8 billion
to $78.5 billion

The richest people on the planet got even richer in 2013, adding $524
billion to their collective net worth, according to the Bloomberg
Billionaires Index, a daily ranking of the world’s 300 wealthiest
individuals.

The aggregate net worth of the world’s top billionaires stood at $3.7
trillion at the market close on December 31, according to the ranking. The
biggest gains came in the technology industry, which soared 28 percent
during the year. Of the 300 people who appeared on the final ranking of
2013, only 70 registered a net loss for the 12-month period. .

Dangote, it stated recorded his highest gain from Dangote Cement, which is
the most capitalized company on the Nigerian Stock Exchange, with a 74 per
cent run-up over the last 365 days.

However, according to FORBES’s most recent statistics, he is now worth
$22.9 billion, up from $12.8 billion at the end of December 2012.

While still aggressively expanding his cement business within the African
continent, the foremost industrialist made a bold move late last year when
he ventured into petroleum refining business when he signed a jumbo term
loan agreement of $3.30 billion with a consortium of both international
and local banks for the purpose of constructing the biggest Petroleum Oil
Refinery & Petrochemical/ Fertilizer Plants in Nigeria.

The plants, which will cost a total of $9 billion will generate up to
9,500 direct and 25,000 indirect jobs, in addition to reducing current
volumes of refined fuel imports by around 50 per cent and effectively
stopping the importation of fertilizer. The USD9billion project will be
financed by USD3billion equity and USD6billiion loan capital.

 

The loan agreement signing between Dangote Group and a consortium of 12
local and international banks was the first tranche of loans secured by
Dangote, comprising USD3.3billion. This first facility was jointly
co-ordinated by Standard Chartered Bank as the Global Coordinator, and
Nigeria’s Guaranty Trust Bank PLC as the Local Coordinator.

 

With the refining capacity expected to reach 400,000 barrels of crude oil
per day and producing a variety of refined fuel products from local crude
resources, Nigeria will cut its current volumes of imported fuel products
by a massive 50 per cent. The 2.8 million tons of urea will be channeled
into growing the local agriculture sector which is essential in producing
healthy crops and promoting Nigeria and West Africa’s agricultural
development.

 

The Petrochemical plant will also produce Polypropylene which is a common
component of most plastic and fabric products, for example it is used in
various forms of packaging, ropes and agro-sacks.

 

Dangote had explained that: “This plant will further entrench Africa’s
role on the global map as not only a valued contributor for natural
resources, but also a competent manufacturer of refined products and
fertilizer.

 

“As a result, several African nations will be less reliant on importing
fuel and fertilizer from foreign markets, reducing the negative impact of
negotiating terms within increasingly turbulent international markets.”

 

According to him the refinery will further create some thousands of job
opportunities both direct and indirect and will trickle down to every
family and reduce unemployment in the country.

 

He stated that the Dangote Group would be ready to delve into sectors that
are capable of generating the much needed jobs and urged other investors
to have abiding faith in the nation’s economy.

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