John Rabie is the entrepreneur who transformed the way South Africans build houses. With humble beginnings, he is now known as the man who took 1.25 million square meters of marshy wasteland on the outskirts of Cape Town and turned it into the $1.95-billion Century City.
It’s hard to believe that this co-founder of the Rabie Property Group is the same humble man who was painting buildings in Sea Point 40 years ago, along with his longtime business partner, Leon Cohen.
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&#8220;I started as painter with Leon. We formed a painting business. We said to ourselves, ‘hang on a second, let&#8217;s start building’. In those days, there was plenty of land in the southern suburbs in Constantia,” says Rabie.
From his office in Cape Town’s foreshore, filled with memorabilia of his property developments and school photographs, you can see why Rabie has stood at the test of time.
“It took me 40 years. There is no instant gratification to wealth. Property development is not a one-day game, it’s a five-day game,” says Rabie, using cricket analogy. “It’s taking a view for the future. Because we build buildings not for five years but because we want to live in them for 10 or 20 years.”
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Along with Century City, Rabie has been involved in other developments around Cape Town, including Marconi Beam, Westlake Estate, Royal Ascot and Big Bay.
Rabie is also responsible for cluster house developments. This started when Rabie didn&#8217;t have the capital to build the houses from scratch. Instead he came up with the idea of plot and plan, which allowed house hunters to pay a deposit on a plot of land for cheap and wait for Rabie to build it.
&#8220;In those days people bought their own little plots and then they built their houses. So we said ‘ok, we can build these houses on your plot for cheaper’. Then we said ‘hang on a minute, let’s take it to the next level’. We acquired five plots on Constantia, I think we paid R10,000 ($850) for a stand at the time – can you believe that, in Constantia of all places? We said ‘let&#8217;s build a house, finish it and furnish it and landscape it’.&#8221;
The idea took off in the 1980s and Rabie&#8217;s team was building five houses a month.  Soon it was building villages, over vast areas of Cape Town&#8217;s southern suburbs. It then moved on to show houses, giving buyers an idea of what the house would look like, right down to the kitchen sink.
&#8220;You know, what people struggle with is the design. How the house is going to look when the building is done, the vision. We had a beautiful brochure with eight or 10 designs, because the individual owned the plot we could sign a building contract and build that house that they chose.&#8221;
Back in his office, Rabie admits to being a hoarder. He has dozens of books with newspaper clippings and advertisements. It is a personal archive of 40 years of developing property. His proudest moment came in 2004, when he bought into a project that wanted to turn a marshy wasteland of 1.25 million square meters into a mini city.
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&#8220;The biggest boom to hit this country was in 2001 to 2007 – the world exploded. That was the biggest property boom we&#8217;d ever seen,&#8221; he says.
&#8220;It changed Rabie Property Group, because we now had a city.&#8221;
Fourteen years and an investment of more than $1.95 billion later, Century City has taken shape. These days it is a city-within-a-city; a place where one can work, live, shop and relax. The precinct hosts more than 500 businesses, 4,000 residential homes and is known for its clean and safe environment.
<div id="attachment_35845" style="width: 1034px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-35845" class="wp-image-35845 size-large" src="https://www.forbesafrica.com/wp-content/uploads/2018/04/Century-City-1024x683.jpg" alt="" width="1024" height="683" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/04/Century-City-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Century-City-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Century-City-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Century-City-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Century-City.jpg 1154w" sizes="(max-width: 1024px) 100vw, 1024px" />The Apex forms the focal point of the new Century City Square in Cape Town. Photo supplied</div>
&#8220;The great thing about Century City is it&#8217;s like a jigsaw puzzle, as the markets change you can change it to have a bit more commercial, a bit more residential areas. When I go inside the conference center or along the canals, I have to pinch myself,&#8221; says Rabie.
One of the latest developments in Century City has been the introduction of a Marriott hotel, the signature brand of the world’s largest hotel group, Marriott International. This brand was ushered in through the recent conversion of the African Pride Crystal Towers Hotel to the Cape Town Marriott Hotel Crystal Towers.
“It’s extremely positive for Century City to showcase a global giant like Marriott. The credibility of the brand internationally adds gravitas to our tenant directory, and we will no doubt see many more visitors from around the world coming to Century City because of the presence of a hotel under this brand,” says Cohen.
By 2010, Rabie had thought he had done all he could do in property. He was traveling abroad when he noticed a trend of inner-city revival. He saw major cities, like Sydney, were rejuvenating derelict buildings in city centers and repurposing them for residential living.
He immediately thought Cape Town could do the same. So, he embarked on co-founding Signatura, the private label property company, to do just that.
&#8220;No one was thinking of inner-city revival at that time. It was going to be very important for Cape Town to have hospitality linked to residential – in other words, intertwined. Our first project was the Radisson. We converted the office into the hotel and put 175 apartments on top, but the apartments have the use of the hotel facilities, the gym etc. That was hugely successful,&#8221; says Rabie.
<div id="attachment_35846" style="width: 310px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-35846" class="size-medium wp-image-35846" src="https://www.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final-300x212.jpg" alt="" width="300" height="212" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final-300x212.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final-600x424.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final-768x543.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final-1024x724.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/04/Radisson-Final.jpg 2048w" sizes="(max-width: 300px) 100vw, 300px" />Rabies ambitious Radisson development in Cape Town. Photo supplied.</div>
Signatura recently completed the upscaling of central city landmark, the Safmarine building. It was transformed into an ambitious $100-million residential and hotel development known as The Radisson Blu Hotel and Residence.
It caters to South Africa&#8217;s growing upper middle class who are eager for luxury living close to the city and the ocean. What stands out for Rabie is the way in which social media has changed the way people buy property.
&#8220;We used to have to put flags up on Sunday at 10 o&#8217;clock. We&#8217;d get dressed up in our work clothes. That’s how we did it. If you didn’t get people into show houses on a Sunday, you didn’t sell. With social media, it changed dramatically. You hardly see us advertising in the press anymore because social media is so incredibly strong. We get 10 to 15 leads every day from people on the internet wanting to know about our developments.&#8221;
In five years, Signatura has rejuvenated more than 20 buildings in and around Cape Town – achieving over $500 million in sales.
It seems Rabie made the right decision to give up painting houses to build them instead.

John-Rabie-online

From Painting Houses To Building A $1.95-Billion Development

In the quiet residential area of North Ridge, a four-acre piece of land is being developed into a 200-unit apartment complex. The development in Accra, Ghana, is part of a trend of new real estate projects springing out from previously abandoned parks.
“This is a very competitive market, there are not many people with a lot of disposable income, so the market for potential buyers is very small with everybody going after the same pot,” says Godwin Ofori, real estate agent at BCD Properties.
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Skyrocketing prices for properties is making people desperate to find bargains, says Ofori. Kelvin Nyame, the Co-Founder of meQasa, is hoping to ease their anguish.
meQasa is an online property listings site connecting buyers to more than 23,000 commercial and residential properties across Ghana.
“There are about 27 million people in Ghana and we look at how many people have the budget to rent the types of houses that are available for rent, or office spaces, then you look at people who have disposable income. We feel that the market is very small, so either you are number one or you are out of the game and to be number one you need to have three times the content that your competitors have,” says Nyame.
Nyame believes content is king.
“In the listings, we are the highest right now, and traffic wise we have closed the gap with our competitors. We are doing about 40,000 serious seekers with over 290,000 page views per month. More than half of the 40,000 are converting and what that means is that they are sending emails to our agents and calling our agents to enquire about our properties and we hope to grow this number by up to 50,000 to 60,000 by December,” he says.
Nyame came up with the idea, along with Rashad Seini and Kofi Amuasi, at the Meltwater Entrepreneurial School of Technology (MEST).
“So the whole idea of MEST is to learn software and online business. The program is structured such that you do capstone projects and in the capstone projects you form teams with everybody. The idea is that by your final capstone project you will want to develop your idea into a business and meQasa was one of the last two projects we were thinking of making into a business. After analysing our expertise and our skill set we decided to go for meQasa.”
Nyame and his team had to adopt a lean strategy from the start.
“The market is very small but there were a lot of big players and we just had $90,000 seed investment from MEST to operate with for two years. So if you do the maths, you can only spend about $3,000 per month and this includes employee salaries, office space, marketing and product development, so we were very limited and everyone was after the same customers, so it was very tough.”
There is, however, a light at the end of the tunnel. At the end of 2015, meQasa secured a much-needed investment of $500,000 from Frontier Digital Ventures, a global venture capital firm headquartered in Kuala Lumpur, Malaysia. Nyame is using that cash injection to streamline the business.
“We started monetizing two months ago and we have what we call subscription for developers, so every developer has a fee they pay for a number of months with different bundles. We also have banner ads and also sell our newsletter. For agents, we have products that are customized as well and by 2017 there will be space for every agent that wants to list on the site.”
In just three years, meQasa gained a significant percentage of the property listings business, according to Nyame.
“The early days were tough. We did a lot of research but we made some assumptions. We tried models. As a business you want to look at how you can make money and some of the models didn’t work. One of the models was that we recruited agents who we called meQasa real estate agents. So basically we would give them some kind of resources and an ID card so they know that they work for us but they also have their own real estate business. The idea was to send them leads so that when they close the deal we share the commission but that didn’t work.”
“We also hired a meQasa agent relationship manager to manage the agents, which also didn’t work. We made a lot of mistakes by also looking at the US market and what will work over there, but again that is a very advanced market so it wouldn’t work here. Now we are looking more at emerging markets in Southeast Asia, who are not too far from us in terms of developments but they managed to find solutions.”
The company plans to expand to other African countries and Nyame hopes he’ll soon be the top player in the continent’s property game.

‘Either You Are Number One  Or You Are Out’

It’s hard to determine Sol Kerzner’s net worth due to his complex web of properties, consultancy fees, dividend income, tax havens, and public and private interests. What’s clear is that he’s sitting pretty in retirement.
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His is a story with humble beginnings.
Born in August 1935, in Troyeville, a rough part of Johannesburg, Kerzner was the youngest of four children. A couple of years later, the close family moved to the nearby Bezuidenhout Valley. While in Johannesburg, Kerzner’s parents, who were Lithuanian immigrants, ran a café and he gives credit to his eldest sister for raising him since his parents were busy seven days a week.
Kerzner was not the best student, more of a boxer, preferring sport to books; he is surprised he made it through school without a problem. His father sent him to Damelin College for his last two years of schooling, where there was no sport to distract him.
He went to the University of the Witwatersrand to study accounting, not knowing what else to do. After graduating, he moved to Durban to do his articles at a top firm. His parents had taken up a lease for a 50-room residential hotel in the coastal city. Kerzner convinced his dad to buy another, down the road, that had a liquor license. He would work there at night, while keeping his day job as an accountant. This gave him his first taste of the industry in which he was to make his fortune.
At night, they would change the light bulbs – and the mood – in the dining room, playing some music to create a spot where the revellers and sailors could unwind. It’s a place Kerzner says was far from five-star but definitely interesting.
In 1962, things were going well for Kerzner. He was a junior partner at an auditing firm and was offered a chief financial officer job at a big industrial company. Instead he bought the lease of the Astra Hotel in the backstreets of Durban.
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“I can’t tell you exactly why, I just got the urge to give up the profession [accountancy] and actually get involved in the hotel [business].”
While he was saying his goodbyes, one of his clients, Herald Franckle, asked why he was doing this when his career in auditing was going so well.
“I’m going to build South Africa’s first great hotel,” Kerzner said.
Kerzner had been receiving brochures from holiday destinations like Miami and Hawaii, and looking around Durban he realized South Africa wasn’t in the same league.
“I’ve always had confidence that South Africa should be able to do as well as any other country.”
The Astra Hotel was just a test run to get a feel of things, complete with dinner club and cabaret to draw in a crowd. He ultimately wanted to build in Umhlanga, a few kilometres north of Durban, because he used to take his girlfriends there and thought it was a ‘nice spot’. Trying to get his vision across, and prove he wasn’t crazy, Kerzner drove Franckle to the spot he had in mind and hooked himself an investor.
At the end of 1963, the designs for his big project in Umhlanga were complete and the bulldozers were on site. But Kerzner had never been abroad, so in November he flew to Miami, via New York. After checking in at the hotel, Kerzner asked a cab driver to show him every hotel in Miami Beach. The trip lasted from midday to 2AM the next morning. By lunchtime the following day, he was back on a flight to New York and recalls hearing about John F. Kennedy’s assassination while he was in the elevator. When Americans were weeping, he spent the night in New York looking at hotel lobbies
and restaurants.
He was convinced his designs were as good as what he had seen in the United States. Kerzner recalls articles in the Sunday Times calling him crazy and over capitalized. He was in his twenties and little worried him. His bet paid off and turned out to be exactly what South Africans were waiting for.
In 1964, the 88-room Beverly Hills Hotel, boasting uninterrupted views of the Indian Ocean, became South Africa’s first five-star hotel, with a R1 million price tag at the time.
The Elangeni Hotel in Durban was bigger and attracted a lot more financing since Kerzner now had some credibility. While he was building it, South African Breweries approached him and together they founded one of South Africa’s largest hotel groups, Southern Sun, now Tsogo Sun. Kerzner later founded Sun International.
A casino license was to prove a spur. A concession was up for grabs in Bophuthatswana, an independent homeland of the apartheid regime. Kerzner and his team won the concession with a warning to deliver.
This became Sun City, a renowned resort around 150 kilometers north west of Johannesburg. The four hotels, two Gary Player-designed golf courses, manmade lake, artificial rainforest and entertainment center took about 10 years to complete. When the resort first opened in 1979, the place was so overwhelmed the doors had to be locked. The estimates of 2,000 day visitors were way off with almost 15,000 turning up that first weekend. Kerzner laughs about how he had to come out with a megaphone to turn people away. The 6,000-seater Entertainment Centre opened with Frank Sinatra in 1981, in breach of the cultural boycott imposed on the country.
“He [Sinatra] walked in, he got on stage and he started singing with the orchestra and he stopped after a few bars and said ‘Sol, I’ve played all over the world… I’ve never played in a room with the sound as what you’ve created here, this is the best room I’ve ever worked in.’”
Kerzner sold his stake in Southern Sun in 1983 and a deal to sell out of Sun International was finalized in 1992. He left South Africa for London in 1987 to break into the international market as he felt he had reached the ceiling at home. It was tough because of the negative feeling towards South Africa at the time. Sentiment changed after Nelson Mandela’s release from prison in 1990.
Two months after his release, Mandela’s office called Kerzner to discuss a meeting. It took place at Kerzner’s Johannesburg home and was about his relationship with the then president of Bophuthatswana, Kgosi Lucas Manyane Mangope, and Zulu chief, Mangosuthu Buthelezi. Mandela wanted to create a united South Africa and wanted Kerzner’s help.
When Kerzner asked Mandela about his thoughts about the controversies surrounding Sun City, the then future statesman said he thought it was great that a young man was creating thousands of jobs out in the countryside.
The business was not easy. Kerzner had to face bribery allegations. In the late 80s there was a long investigation into an alleged R2 million bribe to Transkei‘s prime minister, George Matanzima, for exclusive gambling rights.
Kerzner soldiered on to build award-winning international ventures that include Atlantis Paradise Island in the Bahamas, the One &amp; Only Resorts and The Palm in Dubai.
The Bahamas adventure began when Kerzner was approached by an investment bank to see if he was interested in American entertainer Merv Griffin’s bankrupt Paradise Island resort. He bought it in 1994 and launched into a major redevelopment and expansion program – demolishing the entire front and creating a nearly 60-hectare aquarium that allows you to walk under the sea. The resort ran throughout the construction with cheaper rates, scaffolding and all.
Paradise Island became Atlantis when the Governor General’s wife came over for tea one afternoon, heard the plans and said it sounded a lot like the lost city of Atlantis.
The response was great and occupancy high. Michael Jackson wanted to see it for himself. His tour of the water habitat ended in a mob of tourists taking pictures and getting autographs, none of which fazed Jackson or his bodyguard.
In 2002, the One &amp; Only Resorts were launched in tourist destinations. In 2009, the $128-million, six-star and seven-story One &amp; Only in Cape Town’s V&amp;A Waterfront opened six months ahead of schedule.
Located on Dubai’s manmade Palm Jumeirah is The Atlantis Palm Dubai, a $1.5–billion and 1,539-room joint venture between Kerzner International Holdings Limited (KIHL) and Istithmar World, a private equity and venture capital arm of Dubai World Corporation. Home to a seven-hectare waterpark and 65,000 marine animals, it survived a fire in its lobby before its $20-million opening. Being the biggest opening the company has ever had, a lot of the money was committed before the global financial crash, so the show went on. It featured impromptu performances from friends like Stevie Wonder, Michael Jackson and Natalie Cole, as well as fireworks by the same company that lit up the Beijing Olympics.
Istithmar bought out Kerzner’s 50% stake in the resort in 2012 and sold it last year to the Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund.
Kerzner historically had no capital and relied on financing and strategy, and as a result his ventures had always been financed conservatively. This policy changed in 2006. His son Howard ‘Butch’ was chief executive officer and told him it was a great time to go private. The markets were great and everyone was doing it. The company was taken private in a reported $4 billion buyout; a $2.6 billion mortgage to finance this came at a most inopportune time.
The global recession led to a decline in leisure travel. The situation in the Bahamas was bad. The group also had to face the threat of competition from Baha Mar, which had found a new financial backer and builder in the Export-Import Bank of China and the China State Construction Engineering Corporation, and was being built less than 10 miles away from Atlantis Paradise Island. Brookfield Asset Management held a small piece of the Kerzner loan, $175 million, and went into debt restructuring talks – converting the debt into equity. Brookfield took ownership of the Atlantis and One &amp; Only Ocean Club in the Bahamas, as well as a 50% stake in the One &amp; Only Palmilla, in Mexico, but KIHL held on to long-term management contracts for
the properties.
In 2006, when Butch died in a helicopter crash in the Dominican Republic, Kerzner took two weeks off to figure out if he would take the helm again. This was in the midst of building phase three of Atlantis. It was work that eventually helped him through that difficult time. It was then that he knew it would never be a family business.
“He was one of the few sons who was able to stand up in terms of talent to a great father, and you don’t see that much in my business,” Donald Trump once told the Los Angeles Times about Butch.
The ICD purchased a significant, yet unspecified, stake in KIHL for an undisclosed amount; Kerzner stepped down as chairman and was replaced by Mohammed Al Shaibani.
There is no question in Kerzner’s mind that there are still some investment opportunities in Africa’s hospitality industry. He believes that Africa has opened up and is a whole new ball game.
Although Kerzner has retired, he’s not ready to sit around and do nothing. He is involved in a joint €790-million bid for Club Med with Andrea Bonomi, a former chairman of Banca Popolare di Milano.
During his career, Kerzner planned to open hotels in Zimbabwe and built Chobe Game Lodge in Botswana. He recalls taking in Elizabeth Taylor and Richard Burton for what was to be a two-day visit. When Kerzner got back to his friends two weeks later he found out that not only had they not left, but had decided to get married on the banks of the Chobe.
A 50-year career has its fair share of mistakes.
“In business, if you’re going to be successful and do things that are a little out of the ordinary, invariably you’re going to make mistakes.”
He just tries to avoid the very big ones and has had too much fun to do much differently. One missed opportunity was turning down an offer to be the first person to get involved in a gambling operation in Macau. Another big mistake was going private.
“It’s not only all about how much money you would have made and what you would have got. It’s about having a little bit of fun, being able to create things.”
The part of the business that excited Kerzner most was creating it all and watching it come to life. He feels that his intricate involvement in the design process is part of the reason he has succeeded.
When you are this enthused by what you do, it’s hard to balance work and family. Kerzner has been married and divorced four times, has four children and 10 grandchildren. He feels blessed to have the family and friends he has and admits that he perhaps got a little too carried away with his work.
After a quashed unauthorized biography, we can only hope for a sanctioned one giving greater insight into this private yet well-known personality.

The  Five-Star Millionaire

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.

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