Africa’s wealthiest individuals gauged at a combined net worth of $82.4 billion by Forbes, have recorded gains, thanks to the return of Nigerian billionaire investor Femi Otedola to the list.
Before Otedola’s rejoining with $1.2 billion on Forbes as Nigeria’s fourth richest, the aggregate wealth of Africa’s billionaires was pegged at $81.5 billion in 2023. This showcases a substantial $900 million increment since Otedola’s reentry.
Otedola, currently valued at $1.1 billion, had been absent from the Forbes Africa list since 2017. His strategic divestment from oil investments in 2013, aligning with Nigeria’s energy sector privatization, marked a significant shift.
Notably, his subsequent business moves, including the acquisition of Geregu—a public power generation plant—and the listing of Geregu on the Nigerian exchange’s Main Board in 2022, have played a pivotal role in shaping his present financial standing.
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Femi Otedola’s comeback on Forbes draws a parallel on the impact of his deliberate reduction of his stake in Geregu through share sales to institutional investors.
The remaining 73% stake in Geregu, now valued at over $850 million, adds to a substantial portion of his $1.1 billion fortune, putting him at No. 20 on the list.
Considering Otedola’s return, the overall net worth of Africa’s billionaires experienced a marginal dip. However, this year’s performance stands in stark contrast to the 4% decline witnessed in the preceding year.
African equities joined a late-year global rally, with the S&P All Africa index surging 10% in the final two months of 2023, although it concluded down more than 9% in the 12 months through January 8, 2024.
Generally, African markets have been burdened by economic strains, poor infrastructure, and volatile exchange rates, which continue to be challenging for wealth creation.
Unfortunately, these volatilities in Africa’s market have been a stumbling stone for global investors who tread with caution towards African stock exchanges.
Tying it up, limited access to capital and low disposable incomes as hurdles for entrepreneurs.
What you should know
Africa’s richest man remains Aliko Dangote, who amid political uncertainty, retains the top spot with a fortune of $13.9 billion.
Next in line is South Africa’s Johann Rupert and Nicky Oppenheimer with valuations of $10.1 billion and $9.4 billion, respectively.
- Thirteen billionaires on the list saw gains, while seven experienced declines.
- Christoffel Wiese of South Africa, rebounding from an accounting scandal, maintains his No. 18 rank with a net worth of $1.2 billion.
- Algeria’s Issad Rebrab faces the largest decline, with his net worth plummeting to $2.5 billion.
- In contrast, Egypt’s Nasseff Sawiris records the biggest gain, adding $1.4 billion to reach $8.7 billion.
- A quick highlight shows South Africa dominates with six billionaires, followed by Egypt with five and Nigeria with four. While Morocco can boast of two billionaires in the club, Algeria, Tanzania, and Zimbabwe each have one billionaire.
