Amidst Economic Challenges, Nigeria Emerges as Africa’s Premier Hub for Self-Made Billionaires
Nigeria has surged ahead as the predominant epicenter for self-made billionaires in Africa in 2023, as per the latest findings of the Billionaire Ambitions Report. Despite economic hurdles, the nation has outshone its counterparts, with an astonishing 66.6% of self-made billionaires, surpassing South Africa (60%) and Egypt (50%).
The report, conducting a thorough examination of Middle East and Africa (MEA) nations, has spotlighted Nigeria for its remarkable feat. With a colossal population of approximately 200 million people, the country has secured the top position in fostering self-made billionaires, showcasing a substantial rise in wealth among its affluent populace.
Specifically, the report accentuates the presence of three prominent Nigerian billionaires—Aliko Dangote, AbdulRabiu Samad, and Mike Adenuga—whose combined wealth has skyrocketed by almost 20%, reaching an impressive $28.5 billion. Their financial success is attributed to the exceptional performance of their companies in the consumer retail and oil sectors.
These billionaires’ entrepreneurial journeys serve as notable examples of self-made success stories in Nigeria. For instance, Mike Adenuga made his fortune in telecom and oil production, establishing Globacom as Nigeria’s third-largest mobile phone network and managing Conoil Producing, which oversees six oil blocks in the Niger Delta.
Aliko Dangote, Africa’s wealthiest individual, founded Dangote Cement, the continent’s largest cement producer, controlling an 85% stake in the publicly traded company through a holding entity. Moreover, the imminent launch of Dangote Refinery, one of the world’s largest oil refineries, adds to his monumental achievements.
However, not all regions experienced the same trajectory of wealth growth. South Africa saw a 16.9% increase in net worth among its five billionaires, amassing $25.6 billion. In stark contrast, Egypt faced a downturn, witnessing a historic low of -17.7% in its billionaires’ collective net worth, dwindling to $13.5 billion from $16.4 billion in 2022. The country also saw a reduction in the number of billionaires from six to four within a year.
Despite global economic fluctuations, the 2022/2023 period demonstrated a partial recovery in billionaires’ wealth, driven partly by the resilience of Europe’s Consumer and Retail billionaires. Globally, the number of billionaires rose by 7% to 2,544, with their combined wealth rebounding by 9% to USD 12.0 trillion.
The EMEA region exhibited exceptional performance in 2022, attributed to a post-pandemic surge in luxury goods and cosmetics companies in France. The region’s total wealth escalated by 21% to USD 3.2 trillion, accompanied by a 10% growth in the number of billionaires, from 599 to 658.
Looking ahead, the billionaire community remains cautiously optimistic. While 50% are considering increased exposure to developed market bonds and 46% eyeing hedge funds for investments, concerns about geopolitical tensions (61%) and inflation (44%) loom large. Moreover, while artificial intelligence (AI) is viewed as a significant commercial opportunity by 65% of billionaires, 56% perceive the threat of new technologies disrupting existing business models as a substantial risk.
Nigeria’s remarkable ascent as the leading host of self-made billionaires in Africa mirrors a broader global landscape where wealth is both recovered and reconfigured amidst economic shifts and technological advancements.
