Aliko Dangote’s just-launched fertilizer plant expected to help earn Nigeria about $5 billion in export revenue.



IN MARCH, AFRICA’S RICHEST MAN, ALIKO DANGOTE, opened A $2.5 billion urea and ammonia fertilizer plant in Nigeria commissioned by the country’s President Muhammadu Buhari.



In an interview with FORBES AFRICA, Dangote, the president and CEO of Dangote Group, the continent’s largest cement producer, says the new fertilizer plant, which has already started production, could lead to Nigeria earning about $5 billion in export revenue.



“We are getting a huge demand from all over the world with massive orders from the European Union,” says the billionaire entrepreneur, who is also opening an oil refinery, expected to be Africa’s biggest with the capacity to produce 650,000 barrels per day, by the third quarter of 2022.



The war in Ukraine and the sanctions against Russia, the world’s largest exporter of fertilizers, have meant disrupted global supply chains and this has ignited the price of fertilizers for Africa’s small-scale farmers. Fertilizers provide healthy nutrients for crops and experts say the current impasse can stifle agricultural growth and lead to hunger on the continent.



“As they say, when Nigeria sneezes, the rest of Africa catches a cold and that is exactly what is happening. The Dangote fertilizer plant is important to Africa because with the Ukraine and Russia war, it is just a matter of months that some parts of Africa will be plunged into hunger. We need to have agricultural solutions that do not just rely on the West but rather on Africa,” says Franklin Cudjoe, Founding President and Chief Executive Officer of the IMANI Centre for Policy and Education, a think tank based in Accra, Ghana, to FORBES AFRICA.



Nitrogen, potash and phosphate that are important for fertilizer manufacture also come from Russia and Ukraine. The countries’ leading position stems from their influence on the gas ecosystem too. Fertilizers are a by-product of ammonia created when mixing nitrogen and hydrogen gas.



“The price of nitrogen fertilizer has skyrocketed in recent months. In Europe, we are looking at about 1,000 euros per ton. Now, if more developed economies in Europe are struggling with the cost of fertilizer, what do you think the impact on Africa will be,” asks Farouk Rabiu Mudi, President of the All Farmers Association of Nigeria (AFAN).



Dangote’s fertilizer factory, located in Lekki Free Trade Zone, Lagos, sits on 500 hectares (over 1,200 acres) of land with capacity to produce three million metric tons of urea yearly. The Dangote Group’s website cites the plant as Africa’s largest granulated urea fertilizer complex.



The oil refinery, also at the same location, will boast 1,100kms of subsea pipeline infrastructure to handle 3 billion Standard Cubic Foot (SCF) of gas per day produced for commercial use.



Nigeria has struggled for years to diversify its economy from oil dependency to other value-added sectors. The former minister of agriculture and President of the African Development Bank (AfDB), Akinwumi Adesina, has asserted Nigeria’s need to diversify its export base to a high- value market product that will pursue wealth creation and value-added manufacturing.



The commissioning of the fertilizer factory by the Dangote Group is expected to boost the investment in the sector and hopefully lead to self-sufficiency in food production for the continent.

Key Speakers and Interviews at the Bloomberg New Economy Forum

Aliko Dangote On $2.5 Billion Fertilizer Plant: ‘Massive Orders From The EU’

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FORBES AFRICA 10th ANNIVERSARY: Towards The Next Decade

Despite the pandemic, it was a record-setting year for the world’s wealthiest—with a $5 trillion surge in wealth and an unprecedented number of new billionaires.



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It’s been a year like no other, and we aren’t talking about the pandemic. There were rapid-fire public offerings, surging cryptocurrencies and skyrocketing stock prices. The number of billionaires on&nbsp;Forbes’&nbsp;35th annual list of the world’s wealthiest exploded to an unprecedented&nbsp;2,755—660 more than a year ago. Altogether they are worth&nbsp;$13.1 trillion, up from $8 trillion on the 2020 list.&nbsp;



There are a record high&nbsp;<a href="https://www.forbes.com/sites/chasewithorn/2021/04/06/nearly-500-people-have-become-billionaires-during-the-pandemic-year/?sh=386c528125c0">493 newcomers</a>&nbsp;to the list—roughly one new billionaire every 17 hours, including 210 from China and Hong Kong and 98 from the U.S. The richest newcomer, at $38.2 billion, is&nbsp;Miriam Adelson&nbsp;of Nevada, who inherited her husband Sheldon Adelson’s casino empire following his death in January. Other notable new entrants include movie and TV producer&nbsp;Tyler Perry, Bumble dating app cofounder&nbsp;Whitney Wolfe Herd—the world’s youngest self-made woman billionaire, and Europe’s&nbsp;Guillaume Pousaz, founder of payments firm Checkout.com. Another 250 people who’d fallen off the billionaires’ list in the past came roaring back. Altogether, a staggering 86% of all billionaires are richer than a year ago.https://embedly.forbes.com/widgets/media.html?src=https%3A%2F%2Fe.infogram.com%2F203c82a4-0962-4ff3-b2f9-883366e688b1%3Fsrc%3Dembed&amp;display_name=Infogram&amp;url=https%3A%2F%2Finfogram.com%2Fdesktop-2021-billionaires-recirc-1ho16vojl5w8x4n&amp;image=https%3A%2F%2Finfogram-thumbs-1024.s3-eu-west-1.amazonaws.com%2Fd1c81d9b-cd07-4ed9-ae1f-456751923c71.jpg&amp;key=3ce26dc7e3454db5820ba084d28b4935&amp;type=text%2Fhtml&amp;schema=infogram



Jeff Bezos&nbsp;is the world’s richest person for the fourth year running, worth $177 billion, up $64 billion from a year ago as a result of surging Amazon shares.&nbsp;Elon Musk—the biggest gainer in dollar terms—rocketed into the No. 2 spot with a $151 billion fortune, a whopping $126.4 billion more than a year ago, when he ranked No. 31 and was worth $24.6 billion. The main reason: a 705% climb in Tesla shares. French luxury goods tycoon&nbsp;Bernard Arnault&nbsp;holds onto his spot at No. 3 but his fortune nearly doubled to $150 billion, from $76 billion, due to an 86% rise in the shares of LVMH, owner of brands including Louis Vuitton and Christian Dior and cosmetics retailer Sephora.&nbsp;The top ten richest are worth $1.15 trillion, up by two-thirds from $686 billion last year. Altogether,&nbsp;<a href="https://www.forbes.com/sites/daviddawkins/2021/04/06/europes-billionaires-are-1-trillion-richer-than-a-year-ago/?sh=623d979f76e5">Europe’s billionaires</a>&nbsp;are $1 trillion richer than a year ago.



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<h3 id="h-net-worth-of-the-world-s-richest-person">Net Worth of the World’s Richest Person</h3>



<figure class="wp-block-image"><img decoding="async" src="https://specials-images.forbesimg.com/imageserve/606b6013b0a2afc5b16302b6/0x0.png?fit=scale" alt="Richest person net worth"/></figure>



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This year there are four people worth $100 billion or more—up from just one (Bezos) on last year’s list. Besides Bezos, Musk and Arnault, there’s&nbsp;Bill Gates, who ranks No. 4 at $124 billion, buoyed by the strength of shares he owns in Microsoft, Canadian National Railway and tractor maker Deere &amp; Company.



Rounding out the top five is Facebook founder&nbsp;Mark Zuckerberg, at $97 billion. He’s worth an eye-popping $42.3 billion more than a year ago; Facebook’s shares have risen 80% in the past year as people around the world used its social media platforms to stay in touch. (For more on the richest tech billionaires, see&nbsp;<a href="https://www.forbes.com/sites/kenrickcai/2021/04/06/here-are-the-richest-tech-billionaires-in-2021/?sh=691f42bb4d70">here</a>; and&nbsp;<a href="https://www.forbes.com/sites/mominakhan/2021/04/06/the-10-richest-american-billionaires-2021/?sh=7e747aa4d981">here</a>&nbsp;for the richest Americans.) The richest woman this year is cosmetics heir Francoise Bettencourt Meyers of France; see here for the&nbsp;<a href="https://www.forbes.com/sites/denizcam/2021/04/06/the-top-richest-women-in-the-world-in-2021/?sh=59cfe7094598">richest women</a>.



Warren Buffett&nbsp;is the world’s sixth richest person, worth $96 billion. It’s the first year since 1993 that the revered investor running Berkshire Hathaway has not appeared in the top five. Not that the 90-year-old Oracle of Omaha had a bad year—he’s still worth $28.5 billion more than he was on the 2020 list.



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<h3 id="h-number-of-billionaires-worldwide-and-combined-net-worth">Number of Billionaires Worldwide and Combined Net Worth</h3>



<figure class="wp-block-image"><img decoding="async" src="https://specials-images.forbesimg.com/imageserve/606b5e244876c7b64f423816/0x0.png?fit=scale" alt="Number of Billionaires and combined net worth"/><figcaption>Forbs.com</figcaption></figure>



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The&nbsp;U.S.&nbsp;still has more billionaires than any other country, with 724 (up from 614 last year), but China is closing the gap with 698 (including 71 from&nbsp;Hong Kong&nbsp;and 1 from&nbsp;Macao). Last year the U.S. had 614 billionaires and China had 456 (including 66 from Hong Kong and 1 Macao).&nbsp;India&nbsp;has the third highest number of billionaires, with 140. Altogether, the 1,149 billionaires from Asia-Pacific countries are worth $4.7 trillion, while the U.S. billionaires are worth a total $4.4 trillion.&nbsp; (For more on the countries with the most billionaires, see&nbsp;<a href="https://www.forbes.com/sites/giacomotognini/2021/04/06/the-countries-with-the-most-billionaires-2021/?sh=42c017c0379b">here</a>. Plus&nbsp;<a href="https://www.forbes.com/sites/jenniferwang/2021/04/06/the-10-richest-chinese-billionaires-in-2021/?sh=7e5164685ca2">China’s richest</a>,&nbsp;<a href="https://www.forbes.com/sites/jenniferwang/2021/04/06/asia-ascendant-the-richest-new-chinese-billionaires-in-2021/?sh=3361ff131a1a">China’s newcomers</a>&nbsp;and&nbsp;<a href="https://www.forbes.com/sites/naazneenkarmali/2021/04/06/indias-10-richest-billionaires-2021/?sh=2922cf8359b7">India’s richest</a>.)&nbsp;



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<h3 id="h-the-countries-with-the-most-billionaires">The Countries With The Most Billionaires</h3>



<figure class="wp-block-image"><img decoding="async" src="https://specials-images.forbesimg.com/imageserve/606b7cca1391bb569e6302b6/0x0.png?fit=scale" alt="Countries With The Most Billionaires"/><figcaption>Forbes.com</figcaption></figure>



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A record 1,975 billionaires are self-made, up from 1,457 last year. That equates to 72% of the list (vs. about 70% in 2020). It’s a marked change from the 2001 list of billionaires, when 49% of the total 565 billionaires were self-made.&nbsp;Forbes&nbsp;uses the term “self-made” as a contrast to “inherited” and “inherited &amp; growing;” it’s not meant to indicate that someone created a billion-dollar fortune all on their own. To achieve such a feat takes teamwork.



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<h3 id="h-total-number-of-billionaires-and-self-made-status">Total Number of Billionaires and Self-Made Status</h3>



<figure class="wp-block-image"><img decoding="async" src="https://specials-images.forbesimg.com/imageserve/606c413115a36070b1428bf7/0x0.png?fit=scale" alt="Self-Made Status"/><figcaption>Forbes .com</figcaption></figure>



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One hundred and five of the list members are under 40, two-thirds of whom are self-made. The new youngest self-made billionaire is 26-year-old American&nbsp;Austin Russell,&nbsp;who dropped out of Stanford to found automotive sensor firm Luminar Technologies; he is worth $2.4 billion and ranked No. 1299. There’s a new youngest billionaire as well: 18-year-old&nbsp;Kevin David Lehmann&nbsp;of Germany, whose father Guenther Lehmann transferred his stake in drugstore chain dm-drogerie mkt to him; he’s worth $3.3 billion and ranks No. 925. (Read more about the youngest billionaires&nbsp;<a href="https://www.forbes.com/sites/arielshapiro/2021/04/06/the-worlds-youngest-billionaires-2021-include-a-teenager-from-germany-a-crytpo-magnate-and-a-stanford-dropout/?sh=5e87182a509d">here</a>.). At the other end of the spectrum,&nbsp;the oldest billionaire, at age 99, is U.S. insurance tycoon&nbsp;George Joseph.&nbsp;



Mukesh Ambani&nbsp;of India has become the richest person in Asia, ranked No. 10 and worth an estimated $84.5 billion. He nudges out&nbsp;Jack Ma&nbsp;of China, Asia’s richest person a year ago, whose rank dropped to No. 26 (from No. 17 last year) despite a nearly $10 billion jump in his fortune to $48.4 billion. The biggest gainer in percentage terms this year is from China:&nbsp;Zhong Shanshan&nbsp;took his bottled water company Nongfu Spring public last fall on the Hong Kong Stock Exchange and shares soared, lifting his net worth to $68.9 billion, up 3,345% from $2 billion a year ago.



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<h3 id="h-total-new-billionaires-and-combined-net-worth">Total New Billionaires and Combined Net Worth</h3>



<figure class="wp-block-image"><img decoding="async" src="https://specials-images.forbesimg.com/imageserve/606b5ea2affa9dd12fb89021/0x0.png?fit=scale" alt="Total Newcomers over the years"/><figcaption>Forbes.com</figcaption></figure>



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<h2>#1 | Jeff Bezos</h2>



<h4>NET WORTH:&nbsp;$177 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;AMAZON</h4>



<h4>RESIDENCE: SEATTLE</h4>



<h2>#2 | Elon Musk</h2>



<h4>NET WORTH:&nbsp;$151 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;TESLA, SPACEX</h4>



<h4>RESIDENCE: AUSTIN, TEXAS</h4>



<h2>#3 | Bernard Arnault</h2>



<h4>NET WORTH:&nbsp;$150 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;LUXURY GOODS</h4>



<h4>RESIDENCE:&nbsp;PARIS</h4>



<h2>#4 | Bill Gates</h2>



<h4>NET WORTH:&nbsp;$124 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;MICROSOFT</h4>



<h4>RESIDENCE:&nbsp;MEDINA, WASHINGTON</h4>



<h2>#5 | Mark Zuckerberg</h2>



<h4>NET WORTH:&nbsp;$97 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;FACEBOOK</h4>



<h4>RESIDENCE:&nbsp;PALO ALTO, CALIFORNIA</h4>



<h2>#6 | Warren Buffett</h2>



<h4>NET WORTH:&nbsp;$96 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;BERKSHIRE HATHAWAY</h4>



<h4>RESIDENCE:&nbsp;OMAHA, NEBRASKA</h4>



<h2>#7 | Larry Ellison</h2>



<h4>NET WORTH:&nbsp;$93 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;SOFTWARE</h4>



<h4>RESIDENCE:&nbsp;LANAI, HAWAII</h4>



<h2>#8 | Larry Page</h2>



<h4>NET WORTH:&nbsp;$91.5 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;GOOGLE</h4>



<h4>RESIDENCE:&nbsp;PALO ALTO, CALIFORNIA</h4>



<h2>#9 | Sergey Brin</h2>



<h4>NET WORTH:&nbsp;$89 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;GOOGLE</h4>



<h4>RESIDENCE:&nbsp;LOS ALTOS, CALIFORNIA</h4>



<h2>#10 | Mukesh Ambani</h2>



<h4>NET WORTH:&nbsp;$84.5 BILLION</h4>



<h4>SOURCE OF WEALTH:&nbsp;DIVERSIFIED</h4>



<h4>RESIDENCE:&nbsp;MUMBAI, INDIA</h4>



By Kerry A. Dolan, Forbes Staff

Billionaire Elon Musk Receives Axel Springer Award

Forbes’ 35th Annual World’s Billionaires List: Facts And Figures 2021

Opening Day Of The World Economic Forum (WEF) 2017

A NEW CAPITALISM: Views From The Top

The first-ever Africa Investment Forum was a resounding success with some fascinating math: 49 projects worth $38.7 billion over three days, all for the continent. 



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On a breezy Wednesday morning in November in Johannesburg, there is a feverish bustle at the Sandton Convention Centre, one of South Africa’s most prestigious destinations for conferences. Known for regularly hosting world-class exhibitions and events, today, it is playing host to one of the most important events of the year. 



The second floor of the convention center is pulsating with action and excitement as hundreds of businessmen and power women in sharp suits and African attire greet each other. At each corner of the grand room are huge posters with quotes that say, “People don’t eat potential! It’s time to turn potential into real deals,” and,



<blockquote class="wp-block-quote">We believe that the growth of Africa’s economy represents opportunities for its neighbors </blockquote>



The word on everyone’s lips is transactions. The inaugural edition of the Africa Investment Forum (AIF), organized by the African Development Bank (AfDB), is officially opened by South African President Cyril Ramaphosa. 



The bigwigs of corporate Africa and political power brokers are all here, including Africa’s richest man, Aliko Dangote, along with Nigerian Vice President Yemi Osinbajo, Ghanaian President Nana Akufo-Addo and Ethiopia’s first female president Sahle-Work Zewde. 



The AfDB describes the forum as a collaborative platform for the economic and social development of the continent. The goal is to bring together project sponsors, borrowers, lenders and public and private sector investments to unlock billions of dollars that will accelerate investment. The rationale is simple. Six of the 10 fastest-growing economies are in Africa, yet Africa has a mammoth infrastructure funding gap of $130-$170 billion a year. 



The man called ‘Mr. Development’ in the October 2018 issue of FORBES AFRICA, AfDB President Akinwumi Adesina, believes there needs to be a convergence of stakeholders from all over Africa to broker deals that finally unlock the potential of Africa. 



As with any conference with a multitude of minds, opinions are divided for this one too. On the one hand are those who quietly wonder whether this is going to be yet another three days of rhetoric and ambiguous targets that bear no fruit? Then you have those believers who are convinced that Africa is ripe for an integrated marketplace that can actually deliver real growth. 



For these people, the AIF offers new hope. They believe that the continent’s largest and smallest economies are ready to come together and take charge of their own destiny. 



According to the World Bank, year-on-year economic growth in sub-Saharan Africa is slashed by two percentage points due to a lack of infrastructure. Analysts believe around $100 billion must be invested each year to eliminate the deficit and give African infrastructure a shot at competing with other developing regions. 



Traditionally, the World Bank, the AfDB and African governments have sought to address the infrastructure gap by investing in larger infrastructure projects valued at more than $1 billion. 



This means smaller-scale projects, in the $100 million to $200 million range, which are also necessary for the development goals of the continent, are neglected. 



<blockquote class="wp-block-quote">History shows that trade has the potential to transform nations. </blockquote>





Adesina believes this.&nbsp;





“The AIF is probably the most important game-changing initiative for accelerated economic development in Africa. It is a unique platform for investment, finance, transparent transactions and a genuine African marketplace for closing deals to accelerate the economic development of Africa. The fact is that no individual benefactor, no matter how rich, or government or sovereign wealth fund, or even a multilateral development bank, for that matter, can provide the resources to meet Africa’s critical economic development needs,” he says in his opening address at the conference. 



According to Adesina, the solution is clear. Africa can and Africa must collectively work towards financing its development, requiring broad partnerships with the private sector and an appreciation of the realities of global investment partners. 



“This will be an African investment marketplace where the AfDB and its partners will screen and enhance bankable projects and attract co-investors and facilitate transactions to close Africa’s investment gaps. This platform will reduce intermediation costs and improve the quality of documentation and information and increase active and productive engagements between African governments and the private sector,” he says. 



It is that type of collaboration that brings Shamima Mallam-Hassam, Country Executive of Alter Domus, all the way from Mauritius to Johannesburg. 



“We are a leading fund and corporate services provider, headquartered in Luxemburg, with an office in Mauritius. The purpose of being at the Africa Investment Forum is to meet with people that have projects in Africa, that we can help in their structuring, and use Mauritius as a platform for their investment into Africa. So this is a very high-level forum, where a lot of insights have been shared about where Africa is going and how there can be more collaborations to make projects happen,” she says. 



<figure class="wp-block-image"><img decoding="async" loading="lazy" width="1024" height="683" src="https://www.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident-1024x683.jpg" alt="" class="wp-image-38061" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/AIF-190_EthiopianPresident.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Ethiopia&#8217;s first female president Sahle- Zewde networking with delegates at the Africa Investment Forum. Picture: Gypseenia Lion</figcaption></figure>



Can developing nations thrive in a global economy without an international, collective mind-set? International organizations like the United Nations Conference on Trade and Development (UNCTAD) believe that for sustainable development to exist, more developed African economies need to break down barriers between them and less developed economies. To begin with, the continent needs to address rising unemployment. 



“We need to create 400 million jobs for 400 million Africans, who are already born, between now and 2030. These massive numbers need massive responses,” says Ibrahim Mayaki, CEO of the New Partnership for Africa’s Development (NEPAD) during a panel conversation at AIF. A total of 49 deals were made at the AIF, which were valued at $38.7 billion, according to the final numbers released. These deals represent a renaissance for the African continent. But the concern for some is whether the returns from these deals will remain on the continent. 



“The ownership of industrial assets must be African companies. A lot of developers make the mistake of allowing foreign ownership, which alters the trajectory of your destiny,” says Basil El-Baz, chairman and CEO of Egypt’s Carbon Holdings. 



The all-important issue of women’s empowerment in corporate Africa is also discussed. A panel in ‘Investing in women for accelerated growth’ reveals women entrepreneurs experience a significant funding gap of $42 billion annually, but are more likely to repay loans compared to male borrowers. David Makhura, the premier of the Gauteng province where the conference is held, attests: “African women need to be supported. They are the ones that sell to provide for their children and families.” 



The panel comprises prominent and successful women, including Ibukun Awosika, president of First Bank of Nigeria Limited, Hayat Sindi, senior advisor to the president of the Islamic Development Bank, and Daphne Mashile-Nkosi, chairperson of Kalagadi Manganese. 



<blockquote class="wp-block-quote">We need to make women a critical component of our financial system <cite> Ibukun Awosika</cite></blockquote>



Underpinning the market place is ‘The AIF Platform’, that connects 200,000 American businesses and users from 100 countries, many of whom are potential investors and trade partners for Africa. 



The AIF Platform is announced in partnership with the Inter Development Bank (IDB) who launched a similar platform, Connect America, in 2014. “We have over 400 million smartphones in Africa. Within a few years, this number will exceed a billion. But none of these are made in Africa. We are the consumers but we’re not the value creators,” says Ashish Thakkar, founder of Mara Group, before the closing plenary. 



The AIF Platform was created to address exactly this. By connecting African-based companies like Mara to global trade partners, there can be economies of scale. 



If there is one thing to take away from the conference, it is this: there is a fight to back Africa as an investable destination so that capital can land in the continent and unlock its potential. As Adesina puts it: “This is Africa’s time to change the rhetoric. We need to make Africa independent; we can no longer build Africa relying on aid. The only way to achieve this is a complete rise in intra-Africa trade.”



<figure class="wp-block-image"><img decoding="async" loading="lazy" width="926" height="617" src="https://www.forbesafrica.com/wp-content/uploads/2018/12/Dangote.png" alt="" class="wp-image-38063" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/12/Dangote.png 926w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/Dangote-300x200.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/Dangote-600x400.png 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/12/Dangote-768x512.png 768w" sizes="(max-width: 926px) 100vw, 926px" /><figcaption>Africa&#8217;s richest man, Aliko Dangote attended the inaugural Africa Investment Forum. Picture: Gypseenia Lion</figcaption></figure>



READ MORE | <a rel="noreferrer noopener" aria-label="READ MORE | How Nigeria Can Attract And Keep The Right Kind Of Foreign Direct Investment (opens in a new tab)" href="https://www.forbesafrica.com/current-affairs/2018/12/11/how-nigeria-can-attract-and-keep-the-right-kind-of-foreign-direct-investment/" target="_blank">How Nigeria Can Attract And Keep The Right Kind Of Foreign Direct Investment</a>



READ MORE | <a href="https://www.forbesafrica.com/travel/2018/11/27/offering-the-american-dream-to-african-investors/" target="_blank" rel="noreferrer noopener" aria-label="READ MORE | Offering The American Dream To African Investors (opens in a new tab)">Offering The American Dream To African Investors</a>

Akinwumi-Adesina

Deals, Dollars and Developments On The African Continent

What does Gateway Partners do?
We connect private capital to investment opportunities that we believe are exceptionally attractive across Africa, the Middle East and southeast Asia. We believe these markets are fundamentally attractive for a few reason. One is demographics, with two-thirds of the population under the age of 35, or in Africa’s case, three quarters. We’re also rapidly urbanizing. Across Africa, the Middle East and southeast Asia, almost a billion-and-a-half people will get urbanized over the next 20 to 30 years. If you add the young, growing population with the burgeoning urbanization, you have an increase in consumption and a growth in manufacturing services. Then, if you look at the global economy over the last 20 years, the biggest growth engine has been the trade and investment floors between and across emerging markets.
How important is private equity for Africa?
I think it’s important for a variety of reasons. Africa needs to invest a lot more. It’s estimated that you’ve got to spend another $50 billion a year in building Africa’s infrastructure. If you take the growing consumer, there is a huge opportunity there. Agriculture is also a huge opportunity. So, all of that requires investment. The big challenge that Africa has is its savings rate is very low. The savings rate to GDP ratio across Africa is 15%. In contrast, China has close to 45%. Also the size of the domestic financial sector, once you get outside of South Africa, is very small relative to the investment requirements of Africa.
I’ll give you an example, if you take the entire Nigerian banking system, the combined market capitalization of the top 10 banks, is less than a quarter of the market capitalization of the single largest bank in Indonesia… It means Africa needs foreign capital. Foreign capital takes the form of private equity, foreign markets, bond markets or bank lending. Africa probably needs all of them.
Also, private equity is useful in bringing in potentially an upgradation in management skills, technical skills and technology.
<a href="http://www.forbesafrica.com/homepage/2018/02/27/can-no-longer-say-not-problem/" target="_blank" rel="noopener noreferrer">READ MORE: &#8216;We Can No Longer Say It Is Not My Problem&#8217;</a>
In terms of investment, how does Africa compare to other parts of the world you have worked in , like Asia, the Middle East and Europe? 
In a word: attractive. But, it’s not without its challenges and risks. The way I like to look at Africa is this is China 1990. This is India 2000. This is Vietnam 2005. If you were to look at Africa as the great market for people wanting to buy their first microwave, their first refrigerator, their first car, their first apartment, there is a huge underlying market here.
Also, Africa has had the second highest GDP growth of any continent over the last 10 or 20 years. The levels of governance and the macroeconomic fundamentals of Africa are generally improving. In 20 years, Africa will have more people of a working age than either India or China. If you take agriculture, 60% of the world’s uncultivated arable land is in Africa. If you look across the spectrum, there is a huge need. But, it is not without risk because capital markets are not deep and liquid. The quality of governance in some of these companies is not really high. A lot of the entrepreneurs are third generation entrepreneurs. They need to be lifted up and almost mentored.
What do you look for in a company before making an investment?
As Gateway Fund, we look for companies that provide goods and services that cater to the basic needs of humanity in our markets. We don’t like to invest in companies to do caviar. We don’t like to invest in companies that are a bet on the future and no cash flows. We invest in very basic companies – what we like to call Maslow’s hierarchy of needs bottom of the pyramid – food, shelter, clothing, that kind of stuff. If you look at the stuff we’ve invested in: biscuits and buns, convenience stores, cement, optical fiber network, or data which today is basic.
We also look for companies that have good management that we can trust and work with. And we look where we can add value in terms of taking them into new geographies, new markets and new clients.
<a href="http://www.forbesafrica.com/homepage/2017/06/14/billions-investment-no-jobs/" target="_blank" rel="noopener noreferrer">READ MORE: Billions In Investment But No Jobs</a>
Aliko Dangote is on Gateway’s advisory board. How beneficial is it having the richest man in Africa part of your team? 
It’s huge. He provides insight into how Africa thinks, how Africa behaves, what works in Africa, what doesn’t work in Africa. You can do a 100-year MBA program at any business school and you won’t get that. Then, also, when we look at transactions and understanding whether that makes sense, providing the due diligence on the deal, that helps us as well. Also having somebody like Aliko to help our investee companies go into other markets helps. But I would just hasten to add, Aliko is the star of Africa, but we are also fortunate to have similar high quality advisory board members.

‘Africa Needs Foreign Capital’

African Billionaire Fortunes Rise

Africa’s Billionaires

Aliko Dangote is a man revered for his remarkable achievements in business and his passion for his country. As I wait patiently in his office at Union Marble House, in the plush Lagos suburb of Ikoyi, an inscribed plaque catches my eye. Before I can read it, I hear a man’s voice.
“Nothing is impossible. That is my mantra in life. No matter what you go through, just remember, nothing is impossible for you to achieve and you will overcome it.”
Dangote, Africa’s richest man and the founder of Dangote Group, is dressed in a blue suit and purple tie. His demeanor is warm and welcoming, his gaze attentive. It is hard to believe this soft-spoken man is worth an estimated $14.4 billion, according to FORBES. Despite this wealth, the plaque in his office serves as a reminder of a day he almost lost everything. It all began with a wrong soil test.
“We were importing cement and we had an import terminal in Lagos and Port Harcourt. The government gave incentives to people who will make Nigeria self-sufficient in cement and so we decided to take advantage of the opportunity and build a cement plant. At the time, the entire production of Nigeria was less than two million tons but we decided that we were going to go ahead and build a [plant with] five million tons capacity,” says Dangote.
<div id="attachment_5094" style="width: 310px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-5094" decoding="async" loading="lazy" class="size-medium wp-image-5094" src="/wp-content/uploads/2017/05/aliko-dangote-300x200.jpg" alt="" width="300" height="200" />Founder and Chief Executive of the Dangote Group Aliko Dangote gestures during an interview with Reuters in his office in Lagos, June 13, 2012. Picture taken June 13, 2012 REUTERS/Akintunde Akinleye (NIGERIA &#8211; Tags: BUSINESS) &#8211; RTR37GOU</div>
“So we brought in a contractor and we asked them to do the soil test and also the foundation test. Then they gave us the wrong soil test. Normally the northern part of Nigeria has very hard ground. But they came back and said we just needed a shallow foundation with a maximum of two meters. So the drawing and everything was done based on a two-meter foundation. As soon as we were three months into the job we realized it was more than this.”
This marked the beginning of a long battle to salvage the multi-million-dollar project. The group had hedged everything on the cement factory. In order to stay ahead of the competition, Dangote decided not to do a proper feasibility study so as to avoid attention to the new project. That decision came at a high cost.
“So now we had to go and do piling. We had to stop and change all the drawings and all of a sudden we were faced with 1,000 piles to be built and there were not enough rigs in Nigeria. So we had to order new rigs and even buy rigs for some of the contractors,” says Dangote.
To make matters worse, Dangote needed to finance the project.
“We needed to raise $480 million but the problem was 90 percent of the banks at the time had a market capital of only $20 million. In addition, there were no long-term loans, only short-term loans for about 90 days, so you could tell the challenge we faced. The project stopped, we had to change the drawings and we could not borrow too much money in the system. Borrowing short term and investing in a long-term business was so difficult.”
Another problem was infrastructure.
“We realized that we had to build a gas pipeline because the government who promised to build the pipeline in 1978 had actually not done anything, so we had to construct 92 kilometers of a gas pipeline. The water table was very bad in the area so we had to build a dam and over 100 houses because there was nothing there, so the challenges were coming one by one.”
For Dangote, failure was not an option.
“In my office, I had the project drawings on my wall but I knew that once this project fails the group is gone and that is what really kept me going. It was a major project for us because our size, compared to a project of half a billion then, was big money for us.”
Eventually, there was light at the end of the tunnel. The group received a much-needed lifeline in the form of a $479-million loan from a consortium of banks, led by the International Finance Corporation (IFC). But the storm hadn’t abated yet.
“The most challenging was when we had the cost overrun. Now we had finished the cement factory and the factory was not working and that was really when I went from black to red. I knew that we were really in trouble. But we were very adamant and we persevered. We had challenges for over a year or so and the factory was working on and off,” he says.
That was in 2003. Since then, the Dangote Group has expanded into 18 countries in sub-Saharan Africa as well as Nepal. This year, Dangote plans to take on a new challenge, the volatile oil market.
“We have been pushed into oil because we realized that we had too much cash for the type of business that we are running today, so we need to diversify. On the diversification strategy, we look at what the areas are that can actually take Nigerians to the next level and that is where we map out all the issues and the problems that we are facing as a country for lack of diversifying the economy.”
The group is building one of the largest oil refineries in the country with the potential to meet Nigeria’s requirement of 445,000 to 550,000 barrels of fuel, with spare capacity to export, according to Dangote. The project has an estimated completion date of 2018.
As we wrap up the interview, Dangote’s gaze goes back to the plaque on his table.
“It was a challenging experience and that is why I have the plaque on the table saying nothing is impossible. You need tenacity and focus in business. I have learned a lot and since that time I don’t really get scared of anything.”

“I Knew That We Were Really  In Trouble”

If you have travelled across Africa, you will attest that there is a war between optimism and pessimism. If you look closely, there is a high level of pessimism on the continent. Africans are people who believe in fate; often subject to our situations, than our situations subject to us.
There needs to be a balance between optimism and pessimism, but not so that you only get realism. If this world only had realists, humanity would not have advanced. Realists base their judgments mainly on what has already been proven.
Optimists tend to have too much energy, particularly in the early stages of conceiving an idea, and overlook what could go south. The key here is to realize when your vision does not cost you anything; if so, you are day dreaming.
I will admit, this world was and is built mostly by optimists, the ones who saw something when everyone else saw nothing. This is important because if you can see the invisible, you can do the impossible.
Nevertheless, realists, despite sometimes being negative,  have anchored our society and are often our voice of reason.
As an entrepreneur, you will realize that potential investors are your voice of reason, particularly banks. When you, as an entrepreneur, approach investors excitedly about your business idea, they have a way of making you get in touch with reality by viewing your presentation with x-ray goggles.
I want to touch on the pessimistic bias among some African entrepreneurs, and how we can both confront it and conquer it. It is also important to mention that we have a large number of optimistic entrepreneurs on the continent, especially since Africa is the latest economic frontier for major growth, following on from China and India.
Some might ask whether this pessimistic behavior is part of the nature versus nurture debate. You might notice that a few African entrepreneurs settle for mediocracy, while our Asian, American and European counterparts strive to be the best.
Could it be that you cannot dream to rise above what you are exposed to? Entrepreneurs around the world may have more role models than we do, but we are as capable as any of them.
My concern is that the pessimism is blocking us; we need to stop it once and for all. Let’s follow the example set by some of the shining African stars in business, such as Folorunsho Alakija, Aliko Dangote, Elon Musk, and Mohammed Dewji, among others.
As we embrace optimism, we need to also be careful of blind optimism. You cannot only consider the upside without having counter measures to still succeed if your original plans do not work.
Therefore, a major dosage of optimism, mixed with a dash of realism, is necessary for any African entrepreneur. There is no place for pessimism.
There is a saying I am fond of: while the optimist was arguing that the glass was half full and the pessimist was saying it was half empty, the entrepreneur sold the glass.
So, what needs to be done? We must make sure we use the right metrics to measure our business. This will make it easier to achieve the desired results, not leaving anything to luck or fate. We need to be persistent and implement the right strategies until things start to happen.
Most importantly, African entrepreneurs need to understand that victories don’t come by accident.

mohammed-dewji

See The African Glass As Half Full

Aliko Dangote lives as you might expect, given he’s the richest person in Africa and resides in the same country being bullied by the insidious Boko Haram terrorist group, which finds something noble in kidnapping village girls. Located on Victoria Island, a wealthy Lagos enclave that has a moat in the form of a lagoon and the far eastern shores of the Atlantic Ocean, his mansion comes with all the trimmings: massive black gate, bulletproof windows, Big Brother video surveillance, guards and a secret entryway.
<img decoding="async" loading="lazy" class="alignleft size-medium wp-image-3526" src="/wp-content/uploads/2017/04/cut-218-sugar_W9V1416-290x300.jpg" alt="" width="290" height="300" />
After I enter, a butler motions to a sitting room overlooking a patio and a blue-tiled pool. The three-story fortress is shielded from the 90-degree heat by powerful air-conditioners (themselves presumably shielded from Nigeria’s notoriously unreliable electric grid by diesel generators). Dangote, round-faced with a trimmed graying moustache, appears from upstairs dressed in khakis and a casual blue button-down. The 57-year-old can seem miscast in the role of industrial titan, often speaking so softly that he mumbles.
As breakfast arrives by the platterful, including plantains, smoked chicken in red sauce, diced sweet potatoes, whitefish and sausage, he sticks to coy conversation. Whether about his country’s fraught presidential election (“It’s going to be tough for both parties”) or his cement company’s long-delayed overseas listing (“Maybe next year”), he has little to say. On one subject, though, he is always articulate. “Nigeria is one of the best kept secrets,” Dangote says. “A lot of foreigners are not investing because they’re waiting for the right time. There is no right time.”
Nigeria does provide fertile opportunity for vast wealth. As evidence, look no further than Dangote’s No. 67 rank on the World’s Billionaires List and his $14.7 billion fortune – mostly from three majority stakes in publicly traded cement, sugar and four companies. And he doesn’t arrive here alone. In another dramatic sign of his country’s emergence, Nigeria has overtaken South Africa on FORBES’ 50 Richest in Africa ranking. Thirteen Nigerians earned spots in 2014, including a trio of new billionaires.
Dangote and these other Nigerians power Africa’s largest economy. The drop in crude prices prompted the oil rich country’s stock index to plunge 40% last year, taking Dangote’s net worth down in lockstep – no surprise, since his companies account for almost a third of the nation’s benchmark index (his $10.3 billion drop in net worth was the world’s largest last year). But the underlying fundamentals are strong. From 2010 to 2013, Nigerian GDP expanded by an average of 5% a year. (It now totals some $500 billion, or a third larger than South Africa.) Even with the oil glut, forecasters believe this year’s growth will top 5%. In fact, according to a widely cited Citigroup report, economists expect Nigeria to have among the fastest average annual GDP growth in the world between 2010 and 2050.
There are other reasons for international interest as well. In the shadow of rising Islamic militancy, which has destabilized the Middle East and now threatens to do the same to parts of Africa, President Obama recently issued an executive order tasking US business executives with strengthening trade ties to sub-Saharan Africa (the council includes heavy hitters from Wal-Mart, G.E. and McKinsey).
Prior to that, in May 2014, he dispatched Penny Pritzker to Nigeria, the first visit by a Commerce Secretary in two decades. America’s foreign direct investment in Nigeria reached a continent-leading $8.2 billion in 2012, the last year for which statistics are available. Overall US-Nigerian trade was $9.8 billion last year. Nigeria sells far less oil to America these days – it exported $2 billion of the black stuff last year as the US’ tenth-largest supplier – so most of that trade comes through other goods and services.
<img decoding="async" loading="lazy" class="alignleft size-medium wp-image-3524" src="/wp-content/uploads/2017/04/cut-214-oil_W9V1072-300x296.jpg" alt="" width="300" height="296" />
Keeping Nigeria successful is critical. The country is already Africa’s most populous, with more than 170 million people, and that figure will swell to 210 million by 2020. By 2050, Nigeria is forecast to overtake the United States (440 million to 400 million). Yet a majority of the people subsist on less than $1.25 a day. About half are illiterate; most are very young (the country’s median age is 18.3). And 50% of rural Nigeria lacks access to clean drinking water. It’s hard to imagine the government coming to grips with it all, even if oil prices recover. Nigeria consistently ranks in the bottom quarter of the most corrupt countries in the world, according to Transparency International, and is proving a feckless pursuer of the Boko Haram thugs terrorizing the northeast.
All of which makes Dangote – well connected, wildly wealthy and ready to do business – an increasingly important player on the world stage. “Anyone doing business in Africa,” says David Rubenstein, the cofounder of the Carlyle Group and a fellow billionaire, “knows Dangote.”
The roots of Dangote’s rise lie 150 miles south of the Sahara in his hometown of Kano, Nigeria’s second largest city. A dusty metropolis, Kano has been a trade center and commercial hub since its establishment in the 10th century, thanks to its strategic location on the edge of the vast desert. Egyptian perfumes, incense, inks and mirrors dominated at first, then leather goods. The camel caravans became lucrative enough to fight over; wars broke out with neighboring kingdoms. When the British arrived in the late 1800s, Kano was West Africa’s most important business center.
Under British rule, Sanusi Dantata, Dangote’s grandfather, grew rich trading commodities like grain oats and rice, and ranked as one of Kano’s wealthiest citizens. Dantata insisted on personally raising his grandson – not an unusual arrangement in northern Nigerian culture – and instilled a businessman’s mind-set in Dangote at a young age. At the age of eight, he turned allowance into startup capital. “I would use it to buy sweets, and I would give them to some people to sell, and they would bring me the profit,” Dangote says. “When you are raised by an entrepreneurial parent or grandparent you pick that aspiration. It makes you be much more aggressive – to think anything is possible.”
The country was growing up, too. Post-colonial instability, including countless coups and a civil war in the 1960s, was eclipsed by an oil boom in the 1970s. During that decade, the economy grew 18% annually, with many of the spoils going to well-connected elites. Despite the explosion of revenue, the World Bank still considered Nigeria – along with countries such as Bangladesh, Ethiopia, Chad and Mali – as “low income,” a candidate for international aid.
Dangote, a Muslim, attended Al-Azhar University in Cairo and studied business. After graduation, he asked his grandfather for permission to move to Lagos. A $500,000 loan from his uncle set up 21-year-old Dangote as a trader of rice, sugar and cement. He was well capitalized and a naturally talented trader. He imported sugar from Brazil and rice from Thailand and sold them locally at a huge mark-up. At his height, he says, he was pocketing $10,000 in profit a day. “Things were quite good,” he says. “It allowed us to create an awful lot of cash.”
He also worked the politicians. According to a State Department cable unearthed by WikiLeaks, Dangote “held exclusive import rights in sugar, cement, and rice, using such advantages to do volume business and undercut competitors.” Dangote flatly denies this.
Dangote’s success landed him firmly on America’s radar. A 1994 diplomatic cable singled him out as a businessman to know in Nigeria and drew attention to his clan’s homes in Kano, Lagos, London and Atlanta. The State Department report also highlighted the annual family vacation to the States.
A 1995 trip to Brazil convinced him to shift from trading to manufacturing. Why continue to play middleman when he could make the stuff in Nigeria instead and pocket even more profit? His resolve was strengthened in 1999, when Nigeria held its first democratic presidential election in six years, choosing a bespectacled former military ruler and chicken farmer named Olusegun Obasanjo, whom Dangote had known since 1981. As a key part of his platform, Obasanjo had pledged to protect and promote domestic industry.
That’s all Dangote needed to hear. Dangote Sugar started in 2000 and quickly expanded the annual production capacity of its refinery at Lagos’ Apapa Port to 1.44 million tons, enough to satisfy 90% of national demand. By the time Dangote Sugar debuted on the Nigerian Stock Exchange in 2007, sales had quadrupled to $450 million. The four firms, which began in 1999 and also produces pasta and noodles, followed a similar trajectory. It began with a single mill, tripled revenue to $270 million, increased capacity eightfold to 1.5 million tons – then joined Dangote Sugar on the NSE in 2008, the same year Dangote became the first Nigerian on FORBES’  World’s Billionaires list, at No. 334. In 2005, Dangote secured a $480 million loan led by the World Bank’s International Finance Corporation – Nigerian banks didn’t have the ability, or the stomach, to put up the cash alone – and agreed to plunk down $320 million of his own money to build a cement factory. Dangote Cement listed on the NSE in 2010 as a $1.3 billion-in-sales company. The three companies today do a combined $3 billion in revenue; while Dangote Flour operates at a loss and Dangote Sugar’s net margin falls in line with Brazilian peer Cosan, the cement company is wildly profitable, with a margin of 52% – about double that of close competitor LaFarge Africa.
Obasanjo, re-elected in 2003, worked overtime to ensure that any Dangote challenger who entered the market did so with a significant handicap. At the time Dangote’s sugar and four companies went public, raw sugar was taxed 12 times less than refined sugar, wheat six times less than flour. Dangote Cement prospered from restrictive licenses. The companies retain a vice-like grip on their industries today, controlling at least half of the cement and sugar markets and about 25% of four.
“When Obasanjo took over, he took guys with him,” says a Nigerian belonging to the country’s overlapping circle of business and political elites. “He gave them a leg up.”
Last August, as the Islamic State overran northern Iraq and Boko Haram was declaring its own caliphate in Nigeria, the White House held a US-Africa trade summit in Washington, DC. A highlight was the announcement of a $5 billion fund backed by Wall Street billionaire Steve Schwarzman’s Blackstone Group – and Dangote. They plan to invest in infrastructure companies throughout sub-Saharan Africa.
“We can do well as investors, and the countries will do well,” Schwarzman says. “We’re aware that operating in Africa isn’t as easy as many other places. You have to have a very strong local partner, and we were lucky enough to find Aliko. He’s done a remarkable job.”
Rubenstein, of the Carlyle Group, sought out Dangote as well when raising money for his firm’s first sub-Sahara-focused fund in 2012. Dangote ultimately invested in the $700 million fund.
“His name carries a great deal of weight,” Rubenstein says. “If you say he’s an investor with you that carries a lot of weight. He’s helped us.”
The Carlyle fund has so far invested in five companies, including a $147 million deal last November for Nigeria-based Diamond Bank, a retail lender.
It’s all part of Dangote’s fast-rising international profile. He’s a Davos regular, and appeared with Goodluck Jonathan, Nigeria’s current president, on a panel about investment potential in Africa at the 2014 World Economic Forum. Even four years ago, he was there making a familiar pitch: “Don’t give any more aid to Africa,” he said. Invest with local partners instead. “You will make money, and we’ll make money, and it’s better for everyone.”
But it is not in Dangote’s nature to rely on others to prosper. Mostly, he relies on himself.
He trusts few others with real power at his companies, often making decisions with little more than gut feeling, says a former top executive.
“Ultimately all the decisions sit with the boss, Dangote, rather than the senior management,” the executive says.
Self-reliance and a supremely healthy ego blend seamlessly into a cult of personality at Dangote’s firms. Portraits of him hang on the walls. The average Dangote employee seems to virtually worship him.
“I’m going to be a big man, I’m going to be the next Dangote,” a lab technician at the one of the cement plants says over and over again until his sentiment is recorded on paper. A lieutenant warns that Dangote will walk out of a meeting if it starts even a minute late.
But Dangote is hardly the hermetic workaholic (“I don’t think I’ll ever retire”) he puts on. “He attends more parties than anyone I know,” says Jim Ovia, a banker and close friend. One Sunday last month found Dangote on his yacht – christened Mariya after his mother – and then flying to Geneva on Monday to see his grandchildren. Later that week, he met first with the French general counsel and then with Davido, Nigeria’s biggest pop star.
Another recent social call: breakfast with former president Obasanjo, then onto Abuja to meet the current president. Dangote has good reason to keep up with Jonathan, whose government still enforces Obasanjo-era high tariffs on imports that compete with Dangote’s key products. Indeed, the State Department has come to see Dangote as completely inseparable from the Nigerian government.
“But without him a lot of people wouldn’t have jobs,” says a former US diplomat in Africa. “And Nigeria would be weaker.”
Jonathan’s reign may soon end: He faces a surprisingly strong challenger in this March’s presidential election, and Boko Haram’s unchecked bloodshed is at least partly to blame. The insurgents have killed an estimated 20,000 people, displaced more than a million and now control some 20,000 square miles within Nigeria. Jonathan’s opponent – a retired army general – is seen by his supporters as the best man to finally defeat the terrorists. For Dangote, the upheaval has meant lower demand for his cement (“There are places in the north where no one is thinking of building a home,” one Dangote executive says), and he cut cement prices twice last year, most recently by 14% in November. But whether it’s Jonathan or someone else ruling Nigeria, observers find it difficult to believe that anyone would shut him out of the presidential palace. He’s simply too important to the economy.
Oil represents another big play. He is busy building a refinery some 40 minutes by car outside central Lagos. He explains with uncharacteristic glee that the recent drop in prices will actually make construction easier. His suppliers will be desperate… and easy pickings. “We will be the only ones around,” he says. “We will carry a big knife and cut them on prices.”
The refinery, Dangote says, can be profitable even at $50 to $70 a barrel. Raw crude for the refinery will come from multiple suppliers. If all goes according to plan, it’ll produce 650,000 barrels a day – a variety of gas, diesel and jet fuel. Dangote would basically walk away with a monopoly on refined oil in the country: The four Nigerian National Petroleum refineries are viewed as corrupt to the point of non-functioning.
To make it happen, Dangote plans to invest some $10 billion to $11 billion in the project and an adjacent petrochemical plant, with at least $6.75 billion in debt financing. Dangote threw a big celebration the day he signed the loan terms at the Hilton in Abuja. Guests included state governors, bank executives and, naturally, the president.
Terraforming is almost complete on the refinery’s 10-square-mile site – a jungle swamp now turned into a sandy expanse. A drive-through reveals a few stick huts, the last remnants of native villages that were there before Dangote arrived. Dangote executives promise the government has compensated the displaced natives well. As a stream of black Dangote trucks pass – one with a full bed of armed guards – a woman scurries inside a hut and shoots back a dark look.
The convoy pulls to a halt on a palm-tree-lined beach, a tropical paradise more suited to multimillion-dollar condos than refining petrochemicals. It’s a goner, though, the future home of another Dangote empire.
“The refinery will start in 2018 if we finish on time,” Dangote says, optimistic as always. “By that time all the dead bodies will have been removed from the street. All the trouble will be gone.”

The Gatekeeper  To Growth

Africa billionaires are lining up to put their money where their mouth is in the fight against Ebola.
At least five FORBES AFRICA cover millionaires are putting up to $50 million to fight the disease. It’s being seen as Africa solving its
own problems.
The millionaires include: Africa’s richest man, Aliko Dangote of Dangote Group; Strive Masiyiwa, the Founder and Chairman of global telecommunications group Econet Wireless; Patrice Motsepe, the Founder and Executive Chairman of African Rainbow Minerals; Jim Ovia, Chairman and Co-Founder of Zenith Bank and Mohammed Dewji, the CEO of Mohammed Enterprises Tanzania Limited.
The fund, called the Business-to-Rescue Fund, was launched on November 8  at the African Union (AU) headquarters in Addis Ababa, the first meeting between the AU and the Africa’s private sector.
“Africa is becoming conscious of synergies that exist between entrepreneurship and development and Econet Wireless Group has been involved in the fight against Ebola as early as April,” says Masiyiwa.
Masiyiwa said business was affected by everything that threatens life in the African economy.
“Our focus is the economy and well-being of our generation. The African people will not allow Ebola to persist like the HIV/Aids pandemic.”
Kola Karim, the Managing Director and CEO of Shoreline Energy International, says leading billionaires have set up a benchmark fund of between $30 million to $50 million.
“It’s unfortunate that the Ebola has caused this much pain without a quick response both from governments and businesses. It is the responsibility of the governments and the private sector to make interventions when serious problems like Ebola attack the region,” says Karim.
Political analyst at the University of Johannesburg’s Centre for the Study of Democracy, Gideon Chitanga, says entrepreneurs are playing a role of corporate social responsibility.
“Africa has seen a surge in the number of billionaires in the past decade and it is time that these billionaires start giving back to communities where they are generating their wealth from,” says Chitanga.

Forbes Millionaires  Shell Out  To Stop Ebola

Aliko Dangote is an Africapitalist who has been nominated for FORBES AFRICA’s Person of the Year every year since 2011 and now he has won. The $21.6-billion entrepreneur believes in Africa forging its own future in business and is leading the way.
Heralded by some as the face of the new Nigeria, Africa’s richest man is looking beyond cement, sugar and flour – the three commodities that built his fortune – to the oil business. In April, he announced $9 billion in financing from a consortium of local and international lenders to construct a private oil refinery and fertilizer and petrochemical complex in the country. In August, he announced plans to invest $1 billion in commercial rice farming and modern rice mills. His publicly traded Dangote Cement is also grabbing new markets in Africa, with $750 million in new plants planned for Kenya and Niger.
Dangote is also cementing his position as the continent’s most generous individual after donating $1.2 billion of his personal fortune to the Dangote Foundation.
In 2014, shares from his listed companies were transferred into the foundation, which he founded in 1994 to support initiatives in education, health and youth empowerment.
The Dangote Foundation runs a cash transfer program which complements the Nigerian government’s poverty alleviation programs. It disburses small grants to poor rural women and youths who want to start small businesses. The foundation also funds the construction of university libraries and hospitals across Nigeria.
This year, Dangote also led the way in funding the fight against Ebola in West Africa. He first gave $5 million to the Nigerian government’s containment efforts and then added a further $3 million to the African Union fund to help Liberia, Guinea and Sierra Leone.
Dangote made his first fortune more than three decades ago when he started trading commodities with a loan from his powerful uncle. An aggressive industrialist, his company is one of the largest employers in Nigeria and has four of its 13 subsidiaries listed on the Nigerian Stock Exchange (NSE).
The flagship of the group, Dangote Cement, is the largest listed company in West Africa, accounting for around 30% of the NSE in terms of market capitalization. It is also the first Nigerian company to be on the Forbes Global 2000 companies list.
In 2012, Dangote Cement opened its newest cement plant, with an injection of $1 billion to boost Nigeria’s capacity by 10 million metric tons per annum (MMTPA). Strategically positioned at Nigeria’s largest economic hub in Ibese, near Lagos, the plant was expected to generate 7,000 jobs and transform the import-reliant sector into an export and revenue-generating industry.
As infrastructure has always been Nigeria’s weakness, Dangote announced in April that he was planning a $7-billion investment program for the next four years. It will focus on Nigeria’s power, petrochemical and mining sectors – a move set to position the company as an independent power producer that will supply 2GW of power to the national grid.
In 2013, the Dangote Group signed a $3.3-billion loan agreement with a consortium of banks. This was in line with plans to construct the continent’s biggest petroleum oil refinery and a petrochemical plant in Nigeria. With the refining capacity expected to reach 400,000 barrels of crude oil per day and producing a variety of fuel products from local crude resources, Nigeria would cut its volumes of imported fuel products by an astounding 50%.
In the same year, the Dangote Group launched the integrated mega sugar plantation and sugar refinery projects in seven Nigerian states.
“Our mission is to, through industrialization, reverse the historical trend of the export of foreign exchange and jobs and replace it with foreign exchange conservation and job creation,” said Dangote at the loan signing ceremony in Abuja.
FORBES AFRICA applauds his relentless drive, aggressive ambition and contribution to the continent’s economic trajectory.
<h4>What The Judges Say 
Aliko Dangote is a lion of Africa in terms of business. He is second to none when it comes to investing in Africa, not just Nigeria. He is also a capitalist with a big heart. He puts his money where his mouth is and his foundation is a step forward for a man who wants to make a difference on 
the continent.</h4>

The Lion  Of Africa

Every few minutes, they touched down at Nnamdi Azikiwe International Airport. The roads buzzed and hotel lobbies filled as the world arrived for the most important meeting in African business.
The World Economic Forum (WEF) on Africa, hosted in Abuja, was one of the largest in many years. The biggest names in world business, among 1,000 leaders, were there. They included Aliko Dangote, Pravin Gordhan, Paul Kagame, Uhuru Kenyatta, Li Keqiang and Bineta Diop.
This was a meet to check progress from the last meeting in Cape Town and work out what needs to be done ahead of the next.
Nigeria hosting the gathering reflected its success and trials. In one way it was a celebration after the country was elevated to Africa’s largest economy after the rebasing of its GDP. On Nigeria’s rebased GDP, a wide cross section of investors and prospective entrants confirm that investing in Nigeria has become a priority.
“There is undoubtedly huge potential in this country and the rest of Africa respectively. The real power will, however, only materialize when we get plans into motion and make things work,” says Julian Roberts, the Group Chief Executive of Old Mutual.
On the other side of the coin, the country is still plagued by poor infrastructure and unrest. In Abuja there have been deadly bomb attacks and further north, the Islamist militant group Boko Haram abducted 276 schoolgirls.
It meant public offices and schools closed from May 7 to May 9. Security was beefed up as police squads threw up checkpoints. But, the world made its way to Abuja to tap into Nigeria’s burgeoning market. Investors contributed $21.3 billion in foreign direct investment last year and $2.5 billion in January and February this year alone.
Expectations were high in spite of the difficulties. The forum was set to discuss innovative structural reforms and sustainable investments for creating jobs and prosperity.
“The need to create jobs is a global problem. All countries around the world are concerned about job creation. In Africa, the unemployment problem is compounded by the youthful population and pending demographic transition. Africa’s population is very young…  making African leaders face special challenges,” says Nigeria’s president Goodluck Jonathan.
So, what has changed since the previous forum in Cape Town?
In spite of impressive growth, many African economies have yet to see broad-based prosperity. There are also issues of security, infrastructure, skills, education and health.
Africa’s alarming youth unemployment story is often told in parallel with growth. The youth account for 60% of all of Africa’s unemployed, according to the World Bank. Sub-Saharan Africa’s unemployment rate is at 6% in comparison with the world average of 5%, according to the African Development Bank. The problem is that youth unemployment in most African countries occurs at more than twice the adult rate.
A defective educational system, lack of vocational guidance and training could be to blame.
Nigeria, West Africa’s leading economy is even plagued by intermittent strikes in the classroom.
So, what will WEF achieve?
“It is not just about growth, it’s about the right kind of growth and participants’ focus will not be limited to growing Africa’s economy, but will also highlight means of doing so in an inclusive manner,” says WEF’s head of Africa, Elsie Kanza.
“This meeting is creating tremendous opportunity in sub-Saharan Africa and the continent at large. These opportunities will help to break down barriers and open up new frontiers for business. The theme of this year’s forum is very apt as this is what we are working tirelessly on presently. The power of these forums should not be underestimated,” says Jim Ovia, the $900-million banking veteran and FORBES AFRICA cover in June last year.
Sub-Saharan Africa is expected to remain the world’s second fastest growing region &#8211; a result of more efficiency in resource utilization, better governance and rising domestic demand. Challenges and opportunities shaping Africa’s growth outlook are often under-estimated. These issues went under the microscope at the forum.
Nigeria’s finance minister, Ngozi Okonjo-Iweala, says infrastructural and logistical challenges will continue to hamper the growth of the continent. West African leaders drew up plans to build highways to boost intra-Africa trade, as has been seen in East Africa.
Kenya has signed a $3.6 billion Mombasa-Nairobi railway deal with China. The railway will connect Kenya with the rest of the region and open up trade within East Africa.
Security in Nigeria was also on the agenda with the schoolgirl abduction in the headlines. Jonathan thanked the international community for their support on the issue but questions still hang over what the government will do.
It was announced by Okonjo-Iweala that a sum of $10 million has been approved by the state for a safe school project. A further $10 million will be provided by Nigerian business. This is seen as a move to improve security in Nigerian schools.
Lack of power in Africa poses a major threat to economic growth. Nigeria’s parlous power sector and power privatization process, the biggest on the continent yet, has spurred global interest.
“We are getting somewhere and it will not be an overnight transformation. We are excited about the transformation this sector will experience and urge Nigerians to have some belief and patience in the process,” says Okonjo-Iweala.
Trade between Africa and China is also expected to continue to grow.
“This is definitely the world’s largest inclusive growth. Africa needs to develop its infrastructure and industries while China boasts a stronger and spare capability of investment and construction in this area. Thus, the economies of China and Africa are highly complementary and both sides’ development is each other’s opportunity. China and Africa shall complement each other in mutually beneficial co-operation to give a stronger impetus to each other’s development,” says Li Keqiang, the premier of China.
Technology can also drive the continent’s economy.
“A vast number of people have been digitally empowered and are more open to economic participation. Getting this critical mass to act accordingly should be a stronger focus. Therein lies an opportunity,” says Hendrik du Toit, the CEO of Investec Asset Management.
WEF also announced so-called Global Growth Companies (GGCs) in Africa. These are 16 high growth companies on the continent with innovative revenue growth and sound corporate governance. The selected companies are: Seplat Petroleum Development Company (Nigeria), Computer Warehouse Group (Nigeria), Interswitch Limited (Nigeria), Nagode Group (Nigeria), UAC of Nigeria (Nigeria), Notore Chemical Industries (Nigeria), Nation Media Group (Kenya), Bidco Oil Refineries (Kenya), GML (Mauritius), Growthpoint Properties (South Africa), KZN Oils (South Africa), Net1 UEPS Technologies (South Africa), Tekkie Town (South Africa), Capitec Bank (South Africa) Webber Wentzel (South Africa) and Simba Group (Uganda).
WEF and the Organisation for Economic Co-operation and Development set a joint task force to redesign financing for Africa and developing economies. According to Development Initiatives, an independent organization working on poverty alleviation, approximately $1.7 trillion flows from the developed to the developing world. The task force will redeploy the finance to key sectors of the economies that will benefit the most.
For now, Africa waits in anticipation to see whether the proof is in the pudding.

Time For Action

It took weeks of hard work to verify Rabiu as Africa’s newest billionaire. It took research and calculations by the wealth unit of FORBES, in the United States, and FORBES AFRICA journalists in London, Lagos and Johannesburg.
It is certain that Rabiu will move up the FORBES list of Africa’s richest, which will be expanded from 40 to 50 this year. He was ranked 21st last year. This year’s list will be published in the December-January issue of FORBES AFRICA.
According to Kerry Dolan, the senior editor at FORBES in charge of the wealth unit in San Francisco, the list only adds a few billionaires from Africa to the rankings each year.
“It is too early to say what we are finding. We know that Abdulsamad Rabiu will be on the list as a new billionaire from Nigeria, thanks to reporting by FORBES AFRICA,” says Dolan.
Rabiu, unlike many billionaires on the continent, opened up his books and bank accounts to prove his wealth. The 53-year-old heads the BUA Group, with headquarters on Victoria Island, Lagos. An investigation by FORBES AFRICA turned up a string of assets.
The BUA Group has interests in key sectors similar to those of countryman, Aliko Dangote, Africa’s richest man. They include cement, sugar and flour. Through the group’s subsidiaries it does business in real estate, steel, port concessions, manufacturing, oil, gas and shipping.
The group also owns the ship BUA Cement 1, a 200-meter long vessel designed for heavy loads. It is Nigeria’s first floating terminal.
In addition to his assets in the BUA Group, Rabiu owns property in Britain, worth $62 million, and in South Africa, worth $19 million. Among his properties is a house in Gloucester Square in London worth nearly $16 million and a penthouse at The One &amp; Only Hotel, in Cape Town, worth $12.6 million. Rabiu’s taste for good living is plain to see; he has bought homes from Eaton Square to Avenue Road, also known as Millionaires’ Row.
Rabiu jets around the world on an eight-seater Gulfstream G550 worth $44.9 million, powered by a Rolls-Royce BR710 turbofan engine, as well as an $18-million Legacy 600 aircraft.
<h4>Meet Africa’s Newest Billionaire</h4>
On a chilly autumn night in London, a chauffeured Bentley glides into the courtyard of a quiet and affluent home. Seconds later, at the entrance of the grand two-storey house, the doors swing open and out walks one of Africa’s richest men in a T-shirt, jeans and black overcoat. Hardly how one imagines the publicity-shy chairman and CEO of BUA Group, a privately-owned conglomerate with annual revenues estimated at $2 billion.
The look may be modest; his ambitions are anything but, as revealed by his plans to invest more than $500 million in Nigeria’s economy over the next few years. This is Abdulsamad Rabiu, the unassuming Nigerian business tycoon, full of life, with a keen ear and a great business story.
Born in Nigeria’s northern state of Kano, Rabiu is the son of renowned businessman, Isyaku Rabiu, who made a fortune in trade and industry in the decades after Nigeria’s independence. By the 1970s, Isyaku’s wealth and influence had grown considerably. He emerged as a key sponsor of the National Party of Nigeria, which became the ruling political party after the country returned to civilian rule, following the elections of 1979. A military coup, in 1983, toppled the government and led to the arrest of the president Shehu Shagari and many of his close associates, including Isyaku.
Around this time, the younger Rabiu earned his bachelor’s degree in economics from Capital University in Columbus, Ohio, in the United States. He returned home to find his father’s business in a precarious state following the incarceration. Barely 24 years old, with little business experience, Rabiu had to lead his father’s business empire during dark days.
“It was very difficult. When we started, our dad was not there. There was this huge vacuum, because of his personality. He grew the business, he did everything, everybody reported to him, and then he wasn’t there anymore. So at a very tender age, I was saddled with so many things; I had to make a lot of important decisions, and don’t forget that this happened suddenly,” says Rabiu.
“At the time, there were three ships being discharged, rice and sugar ships. The government agencies tried to seize the goods; so we were discharging, they were taking, we were taking back. It was a big, big issue. Those kinds of things were really challenging.”
“The biggest challenge was that there were restrictions on confirming letters of credit because of the coup. Then there was the issue of the planes; there were two private jets and we didn’t know what to do with them. We couldn’t fly them. They actually grounded the jets. We were able to get the big one out and we decided we didn’t need it. I just got rid of it.”
“[My father] was in detention, so who was going to be flying a private jet at that time with the major-general Muhammadu Buhari around. They grounded the small plane for two years but it was released after [my father] was released from detention.”
In 1988, Rabiu set up his own business, BUA International, with the blessing of his father. He  imported rice, sugar and edible oils, as well as iron and steel rods. His big break came in 1990 when a friend informed him of an opportunity to do a deal with a government-owned steel company.
Production at the Delta Steel Company had been beggared by the Nigerian government’s decision to reduce grants. The company was considering approaching private business to finance the procurement of raw materials and Rabiu saw the opportunity. The deal needed approval from the government. After approaching the minister of steel, who hailed from Rabiu’s home state, he was asked to finance the project.
“They only wanted three serious companies to participate because they did not want to shut down Delta Steel. He went to the president and managed to get a special allocation to Delta Steel, but it wasn’t enough. So, he asked if we would be able to get counter funding, and I said ‘of course’. We approached First Bank and we showed them the proposal at the time and they said they would need us to put in our equity.”
“We were able to get the business which was worth almost $20 million at the time, but the idea was that we were importing their raw materials to the tune of 25,000 to 30,000 tons per month, and instead of them paying us back in cash, they gave us the processed products. We didn’t want to collect money because at the time you would sometimes never get it.”
The payment method was favorable for Rabiu and his company because the price of the products was government controlled.
“I think it was around $6.3 from the company, but around $90 in the open market. So it was quite a good opportunity for us and we made quite a bit of money.”
By 1992, a regime change came and the honeymoon was over. With the substantial profits he had made from the steel venture, Rabiu invested in Tropic Commercial Bank, which operated in Nigeria. He became the chairman of the bank after buying a majority shareholding.
In 1995, BUA acquired Nigeria Oil Mills, which was a peanut processing company in Kano, for more than $20 million. The previous owners had offered BUA the business based on their status as a player in the edible oils business. Two years later, BUA Flour Mills’ first factory was established in Lagos. The Kano flour factory was launched in 1998. Thereafter, BUA set up its sugar refinery in Lagos. The 2,000 metric ton (MT) per day capacity plant is the second largest refinery in West Africa, after the Dangote Sugar refinery, which produces an estimated 2,400MT per day.
It’s a hot morning in Port Harcourt, on the coast of Nigeria when FORBES AFRICA visits one of Rabiu’s biggest projects, the BUA Mixed Development, which includes: a sugar refinery with a production capacity of 2,000 tons per day and a 65,000MT storage; a flour mill; a pasta, semolina and rice mill. In the capital, Abuja, Rabiu’s BUA Group has a huge housing project of 200 homes to be completed by early next year.
“He is very analytical, balanced and always calm under stressful situations. In spite of being experienced, he is always willing to learn more,” says Engr Olumo, BUA Group’s project co-ordinator in the eastern region.
“It has been wonderful seeing the company grow and prosper. Mr Rabiu is very approachable and reasonable. We have a team of 14 people working in the London office and we all feel as if we are a family. We are treated with the utmost respect. All employees approach Mr Rabiu on a first name basis,” says Rajan Sharma, the trade finance manager at Rabiu’s equipment and material procurement company, NOM UK.
Rabiu has often been compared to Africa’s richest man, Aliko Dangote, due to the fact that most of their businesses operate in the same sectors. He dismisses talk of any competition between himself and Dangote, pointing out that their mutual interests in certain sectors derives from the inclinations of the patriarchs of their families.
“We are both from Kano and our parents were doing more or less the same kind of business, so we grew up in the trading environment. My dad had been doing rice, sugar and edible oil for a very long time. Aliko’s granduncle, Sanusi Dantata, at one time was the biggest trader in terms of imports in Kano State,” he says.
“We’ve known each other since childhood. Although people seem to think that we are doing the sort of business that Aliko is doing, I keep telling them that this is a business that my family has been involved in before Aliko even started.”
BUA’s sugar venture was a cash cow. The company was able to reap huge margins due to the difference in duties for imports of raw sugar, which was 5%, and that of finished, or white, sugar, which is 50%. With the money he made from this business, the amount of which he declines to reveal, Rabiu cast his eye further.
His research revealed that the cement business would offer good returns on investment. The first step was to secure a license to import cement. The market for cement in the country was characterized by high price through scarcity, which was due to the fact that few companies held licences to import. Conditions for obtaining the license included that the interested company must have a terminal where the raw cement would be processed and bagged, as well as have a plant in Nigeria where production is taking place, or be in the process of building one.
BUA set out to meet the requirements, starting with the acquisition of the Cement Company of Northern Nigeria (CCNN) for nearly $100 million from Scancem International in 2007. The next goal was to procure the terminal. Since it would have taken over a year to build one, Rabiu made the smart move to acquire a floating terminal. He approached the then president, Umaru Musa Yar’adua, to secure the approval. The terminal secured the import license.
Production on this platform was carried out until last year when the government restricted imports following the launch of Dangote’s $1 billion cement plant in Ibese, Nigeria. Although Rabiu disagrees with the government’s decision, he says he was prepared for it.
“When the Ibese plant was commissioned, the government decided that that there was enough production capacity in Nigeria and there will be no need for imports. I still do not agree with that.”
“We knew it was coming, so we decided to put up our own plant. Part of what we acquired from Scancem was a small grinding plant in Edo State, which is called Edo Cement, but then with a large limestone deposit. The plant is being built as we speak and will be delivered next year. It is a 3-million ton plant and costs a little over $500 million. At the same time, we are also looking at Ilaro, west Nigeria; in fact I am going to China next week for a meeting with CDMI, a Chinese cement plant manufacturer, to put up another plant in Ilaro. We want to capture part of the south western market, because that is the biggest market in Nigeria today.”
Rabiu believes that Nigerian demand is greater than estimated. He points out that when the additional supply is added and the price is adjusted further, latent demand will be unlocked.
“Nigeria has around 170 million people and the production capacity that the country has is about 20 million, maybe 22 million tons. So that gives us about 117 kilograms per head. Nigeria is so low in relation to other African countries, in terms of consumption per head. It has to go up and I am looking at a minimum of 250 kilograms per head in the next three to four years. I think it will happen and we are looking at least at a minimum of 35 to 40 million tons capacity,” he says.
“The price of cement in Nigeria is probably the highest anywhere in the world, apart from possibly Zambia, at $8.80 per bag, which is $173 per ton. It’s around $40 anywhere else in the world; why should it be $170? It doesn’t make sense at all.”
“Everybody says we have issues with infrastructure and power; it’s nonsense. Power is cheap in Nigeria. Gas is cheap. We had to put up a power plant at Edo Cement, which is about $60 to $70 million. Capital expenditure is there, and it’s quite a bit of money. But, it costs you no more than $20 million a year for gas and it is your biggest cost in a cement plant,” he says.
Rabiu wants to see the price of products decrease so that demand will increase.
“The moment we have a price that is more affordable, demand is going to shoot up. Today cement is around $8 per bag. If we are able to sell it at $6.20, you will see demand shooting up by at least 20% every year. In five years, production will more than double.”
While cement has been a key focus of the group’s activities in recent years, Rabiu also has his eyes on the steel industry.
“In sub-Saharan Africa, Nigeria is the largest importer of steel and steel products, especially pipes, flat sheets and reinforcements, yet we do not have an integrated steel plant in the country.”
Plans are also being made to invest more in expanding the sugar business to exploit opportunities that have been created by the federal government’s implementation of a national sugar master plan.
“We want to ensure that we have at least 30,000 hectares cultivated for sugar plantation in the next three years. We have the Lafiaji sugar plantation, which we bought from the government around four years ago, but it is only around 15,000 hectares, so we are trying to develop another 30,000 hectares.”
“We believe the demand for sugar will go up simply because of the price. Sugar is still around $400. The cost of production, if you have a plantation, is probably around $150 per ton to produce locally. Imagine the demand if that happens. We should be able to supply the entire region with sugar, we will look to take the West African market,” he says.
For a man who can easily afford the best in life—he has a Bentley and Aston Martin parked in his courtyard—Rabiu’s simplicity is remarkable. He speaks excitedly about going to see American jazz singer Stacey Kent play whenever she performs in London. The man is also a movie buff and is always on the lookout for blockbuster releases. With a whiff of triumph, he declares that he just saw the new biographical drama Diana, which captures the last two years of the life of the late Princess of Wales.
Rabiu exudes an aura of a fulfilment. He gives the impression of one who values his achievements and success, but does not wear it on his sleeve. From being born with a silver spoon in his mouth, Rabiu—Africa’s newest billionaire—has carved out his own place in the continent’s business history.

Tag: Aliko Dangote

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