Forbes estimates that Africa’s wealthiest individuals have a combined net worth of $82.4 billion, and the return of Nigerian billionaire investor Femi Otedola to the list has boosted their fortunes.
According to The Times, prior to Otedola’s return to Forbes as Nigeria’s fourth richest person with $1.2 billion, the combined wealth of Africa’s billionaires was estimated to be $81.5 billion by 2023. This represents a significant $900 million increase since Otedola’s entrance.
Otedola, now worth $1.1 billion, has been absent from the Forbes Africa list since 2017. His strategic disengagement from oil investments in 2013, which coincided with Nigeria’s energy sector privatization, was a significant shift.
Notably, his following financial decisions, including the acquisition of Geregu—a public power producing 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.
Femi Otedola’s return to Forbes draws parallels with the consequence of his planned reduction of his shareholding in Geregu through share sales to institutional investors.
The remaining 73% interest in Geregu, currently worth more than $850 million, contributes significantly to his $1.1 billion fortune, ranking him 20th on the list.
Given Otedola’s return, Africa’s billionaires’ net worth has decreased slightly. However, this year’s result contrasts sharply with last year’s 4% fall.
African equities joined a late-year global rally, with the S&P All Africa index rising 10% in the final two months of 2023, albeit it fell more than 9% in the year ending January 8, 2024.
Unfortunately, Africa’s market volatility has served as a stumbling block for global investors who are wary of African stock exchanges.
To summarise, entrepreneurs face challenges such as limited access to financing and low discretionary income.
Aliko Dangote is Africa’s richest man, despite political uncertainties, with a fortune of $13.9 billion.
Johann Rupert and Nicky Oppenheimer from South Africa are next in line, with evaluations of $10.1 billion and $9.4 billion, respectively.
Thirteen billionaires on the list increased their wealth, while seven faced a decrease. Christoffel Wiese of South Africa, rebounding from an accounting scandal, maintains his No. 18 rank with a net worth of $1.2 billion.
