Nigeria’s Billionaires Plan to Conquer Africa

This year, Nigeria adds a new billionaire Mike Adenuga, and sees Aliko Dangote’s fortune skyrocket.

Alike Dangote

In the past year Aliko Dangote’s fortune surged 557% to $13.8 billion, up from $2.1 billion, after he consolidated all his public and private cement holdings throughout Africa into the continent’s largest cement manufacturer and took it public on the Nigerian stock exchange in October. Dangote Cement now has a market value in excess of $13 billion, and accounts for a quarter of the Nigeria Stock Exchange’s total market capitalization.

The dearth of native suppliers to meet increasing cement demand is driving the stock price. Dangote projects demand at 72 million metric tons and growing because of the drive to build infrastructure in Nigeria, Africa’s most populated nation, as well as other countries; current supply is 67 million metric tons, a shortfall of 5 million metric tons.

For perspective, he is now richer than longtime white South African billionaires Nicky Oppenheimer of Debeers and Johann Rupert of luxury goods group Richemont, which owns Cartier, Dunhill and other premium brands.

For now he’s gearing up to introduce Dangote Cement to foreign investors. Companies listed on the Nigerian stock exchange are required to have a minimum free float of 25%, Dangote initially listed 5% of shares. According to analysts at Thaddeus Investment Advisors, the Nigerian market is too shallow for a stock of Dangote Cement’s size to be listed on the exchange; this is why the balance of the free float will be listed outside of Nigeria. Dangote, who recently bought himself a $45 million Bombardier aircraft for his birthday, has been shuttling back and forth to London for months, in anticipation of a public offering in London later this year.

He is certainly one to watch. After a lucrative career in trading, Dangote ventured into manufacturing pasta, salt, sugar, and flour in 1997, in part encouraged by the policies of former president Olusegun Obasanjo. Eventually Dangote went from importing and rebagging cement to production as well; he was awarded the government’s then state-owned cement business and began building his own plant in 2003. Cement revenue which has been primarily based on imports grew 15% a year between 2001 and 2005; once the Obajana plant was fully operational in 2007, revenue quadrupled; in fiscal 2009 revenue was $1.2 billion.

Dangote Cement now owns three cement plants and two terminals in Nigeria where he both produces and still imports cement. The Obajana plant is Dangote’s largest to date and controls the largest market share in Nigeria; Dangote terminals at Lagos and Port-Harcourt have the highest import quotas of all local companies. With additional capacity coming on line this year, total capacity is expected to reach 26 million metric tons by the end of 2011. (also helping boost profits: Dangote’s newly combined entity is tax exempt through 2017.)

But he won’t stop there. Dangote has started building investments in cement plants and terminals across Africa including Senegal, Zambia, Tanzania, Congo, Ethiopia, Cameroun, Sierra Leone, Ivory Coast, Liberia and Ghana.

Mike Adenuga

Meanwhile his compatriot Mike Adenuga who founded Globacom, the mobile, fixed, broadband, and international gateway carrier, joins Forbes’ billionaires list with a net worth of $2 billion. Globacom launched services in Nigeria in 2005, in the Republic of Benin in 2008 and has licences to operate in Ghana and Cote d’Ivoire (with Togo and Senegal next). He took a big gamble laying a $1 billion undersea fibre optic cable, Glo-1, to link Africa with the rest of the world. (partnered with Alcatel-Lucent) The connection will help lower prices for customers as well as help Adenuga expand more quickly.

[FORBES]: Africans on the 2011 Forbes List of Billionaires

Forbes Magazine recently released its list of billionaires for 2011. The Forbes list of billionaires is based on an annual assessment of wealth and assetts compiled and published by Forbes magazine. Check out the list of Africans that made this year’s list.
Africans on the 2011 Forbes List of Billionaires

The Nigerian businessman’s fortune surged 557% in the past year, making him the world’s biggest gainer in percentage terms and Africa’s richest individual for the first time. The catalyst was listing Dangote Cement, which integrated his investments across Africa with his previously public Benue Cement; it now accounts for a quarter of the Nigeria Stock Exchange’s total market cap. Already the continent’s biggest cement maker, he has plants under construction in Zambia, Tanzania, Congo and Ethiopa and is building cement terminals in Sierra Leone, Ivory Coast and Liberia, among other places. Dangote, who recently bought himself a $45 million Bombardier aircraft for his birthday, has been shuttling back and forth to London for months, in anticipation of a public offering there later this year. Dangote began his career as a commodities trader; built his Dangote Group into conglomerate with interests in sugar, flour milling, salt processing, cement manufacturing, textiles, real estate, and oil and gas.

The ‘forever’ part of the diamonds story don’t seem to be rubbing off on the fortunes of De Beers. The world’s largest diamond producer, owned by Oppenheimer, has seen a choppy ride in the last couple of years. Buyers took flight in the aftermath of the 2008 financial crisis and are now slowly coming back led by developing countries such as India and China. The company cut costs aggressively last year and has been selling off some of its assets in 2010, a year that it said was better than expected.Oppenheimer quashed speculation in January that he was divesting the family’s 40% stake in De Beers to Anglo American, which already owns 45% in it. The Oppenheimer family, in turn, owns 2% in mining giant Anglo American, founded in 1917 by grandfather Ernest. Passionate conservationist, owns Tswalu Kalahari Reserve, largest private game reserve in South Africa.

Youngest son of Orascom founder and billionaire Onsi Sawiris. Took over leadership of empire’s flagship construction and fertilizer division in 1998. In 2007, sold cement business in Algeria to French construction giant Lafarge. Owns 13.9% stake in Lafarge, and sits on board . Also largest shareholder in cement producer Texas Industries. Had berated management’s poor performance, but recently reached agreement to boost stake to no more than 20%. Shares of Orascom on London exchange plunged by more than one-third after uprising in Egypt.

Owns publicly traded Swiss luxury group Richemont, which owns Cartier, Dunhill, makes Chloe bags and MontBlanc pens. Company has been doing better than analyst expectations on the back of accelerating sales in Asia-Pacific. Big on acquisitions: Richemont bought out online fashion portal Net-a-Porter 350 million pounds in April 2010 while his South African holding company, Remgro, bought out private South African investment outfit, VenFin, earlier. Appointed as Chancellor of the University of Stellenbosch,in South Africa where he has an office. With family relatives, owns two of South Africa’s best-known vineyards, Rupert & Rothschild and L’Ormarins; owns one of the country’s most exclusive golf clubs. Launched L’Ormarins 1200 car rally;has been pushed back from October 2010 to end-2011. Recently, he vowed to take on oil multinational Shell, opposing shale gas development in SA.

Eldest son of Orascom founder Onsi Sawiris played a role in Egypt’s revolution, calling on Hosni Mubarak to step down and new government to be formed. Now seems to be distancing himself from politics. Heads Wind Telecom, which provides mobile services across Middle East, Africa, South Asia, Europe and Canada through Orascom Telecom, Italy’s Wind Telecomunicazioni and Greece’s Wind Hellas. Russian mobile operator Vimpelcom offered to buy Wind Telecom assets for $6.6 billion; Naguib is reportedly considering a revised offer. Failed earlier to sell his telecom assets to South African operator MTN Group.
Patrice Motsepe
$3.3 B
Net Worth Calculated March 2011
Age: 49
Source: Mining, self-made
Residence: Johannesburg, South Africa
Country of citizenship: South Africa
Marital Status: Married
Children: 3
World’s Billionaires
#336 overall
#3 in South Africa
Johannesburg mining magnate is South Africa’s first black billionaire. Net worth up this year by $1 billion as a result of rising stock prices. Born in the sprawling black township of Soweto and then trained as a lawyer, became first black partner at Bowman Gilfillan law firm in Johannesburg, before starting a contracting business doing mine scut work. Bought low-producing gold mine shafts in 1994, turned them profitable using lean, mean management style. Since then built $1.5 billion (sales) mining conglomerate, African Rainbow Minerals (ARM), with interests in platinum, nickel, chrome, iron, manganese, coal and gold. Benefited from South Africa’s Black Economic Empowerment (BEE) laws, which mandate that companies be at least 26% black-owned in order to get a government mining license. Also holds a stake in Sanlam, a publicly traded financial services company outside Cape Town where he sits on the board.
Onsi Sawiris
$2.9 B
Net Worth Calculated March 2011
Age: 81
Source: construction, self-made
Residence: Cairo, Egypt
Country of citizenship: Egypt
Marital Status: Married
Children: 3
World’s Billionaires
#393 overall
#3 in Egypt
Founding patriarch of Egypt’s most famous business dynasty. Onsi’s three sons Naguib, Samih and Nassef run separate Orascom telecom, hotels and construction divisions. Studied agriculture in college after father urged him to pursue farming. Found it boring, and instead opened a small contracting firm in Upper Egypt. Was forced to rebuild after Nasser nationalized company in 1960s.
Mohamed Mansour
$2 B
Net Worth Calculated March 2011
Age: 63
Source: cotton trading, inherited and growing
Residence: Cairo, Egypt
Country of citizenship: Egypt
Education: MBA, Auburn University
Marital Status: Married
Children: 2
World’s Billionaires
#595 overall
#4 in Egypt
Mansour and his two brothers debut on the billionaires list, each with their own billion-dollar fortune despite revolution raging in their native Egypt. The Mansours are the biggest sellers of GM vehicles worldwide, and their Mansour Group has other interests including the largest supermarket chain in Egypt and the country’s second largest real estate developer. Sustained little damage during the Egypt uprising; any long term impact remains unclear. Mohammed was the country’s Minister of Transportation from 2005 until 2009; his sprawling estate in Cairo overlooks the pyramids.

Nicknamed “the Guru” in his native Nigeria, Adenuga debuts on our billionaires list after making waves with mobile technology. His telecoms carrier Globacom recently launched a 4G network, and he’s invested $1 billion on a submarine cable connecting Nigeria to the rest of the world. He made his first million at age 26 selling lace and distributing Coca-Cola, then won a contract to build military barracks in the late 1980s. He owns a stake in the Equitorial Trust Bank and chairs Niger Delta oil exploration firm Conoil. Adenuga is a soccer devotee and sponsors a number of tournaments.
Yasseen Mansour
$1.8 B
Net Worth Calculated March 2011
Age: 49
Source: Diversified, inherited and growing
Residence: Cairo, Egypt
Country of citizenship: Egypt
Education: BA/BS, George Washington University
Marital Status: Married
Children: 4
World’s Billionaires New to the list
#692 overall
#5 in Egypt
New on the list. Youngest brother of Mohamed Mansour, 49-year-old Yasseen heads Palm Hills Developments, Egypt’s second largest real estate developer. Builds luxury housing and resorts. Impact of Egypt’s revolution still unclear. Cousin who was Mubarak’s housing minister before ouster in cabinet shake-up, is a shareholder in Palm Hills and other Mansour holdings. He now faces allegations of corruption. Youssef is graduate of George Washington University.
Youssef Mansour
$1.8 B
Net Worth Calculated March 2011
Age: 65
Source: Diversified, inherited and growing
Residence: Cairo, Egypt
Country of citizenship: Egypt
Education: MBA, Auburn University; North Carolina State University
Marital Status: Married
Children: 5
World’s Billionaires New to the list
#692 overall
#6 in Egypt
New to the list. Older brother of Mohamed Mansour, Youssef, 65, was instrumental in building the largest supermarket chain in Egypt, Metro. Stores spared looting during uprising; loyal employees stood guard daily to defend from theft and stay open for business. Now situation unclear. Devotes time to family foundation, with mission to eradicate illiteracy and promote education. With wife, enjoys collecting Louis XIV furniture and Renaissance paintings.

The South African makes the cut thanks to his stake in the continent’s biggest retailer, low-price supermarket chain Shoprite. Known as “Christo”, he also owns a stake in discount clothes, shoes and textiles chain Pepkor (slogan: “Making the desirable affordable.”) Restored a South African farm estate and remodeled it into a five-star hotel, Lanzerac Manor & Winery. Replanted the vineyards around it, created a modern cellar and has restarted brewing wine. Also owns wine producer Lourensford Estate and a private game reserve in the Kalahari
Samih Sawiris
$1.4 B
Net Worth Calculated March 2011
Age: 54
Source: hotels, inherited and growing
Residence: Cairo, Egypt
Country of citizenship: Egypt
Marital Status: Married
World’s Billionaires
#879 overall
#7 in Egypt
Middle son of Orascom founder and billionaire Onsi Sawiris. Samih runs real estate and hotel division which owns and operates hotels in eight countries, including Egypt, Jordan, Oman, UAE and Switzerland. Hotel properties in Egypt may take a hit, as tourists flee Egypt due to unrest. In 2010 partnered with French luxury goods company LVMH to develop two resorts in Oman and Egypt under Cheval Blanc brand. Also building luxury hotels and a golf course on a former Nazi supply route in Andermatt, Switzeland.
Mohamed Al Fayed & family
$1.2 B
Net Worth Calculated March 2011
Age: 78
Source: Retail, self-made
Country of citizenship: Egypt
Marital Status: Married
Children: 5
World’s Billionaires New to the list
#993 overall
#8 in Egypt
Flamboyant Egyptian businessman, father of Dodi Al Fayed who died in a car crash along with Princess Diana in Paris in August 1997. A natural born salesman, began flogging homemade lemonade to his classmates during recess; said to have sold Pepsi in market stalls, worked as a sewing machine salesman. Became an associate of businessman and weapons dealer Adnan Khashoggi, whose sister he eventually married. Became a British resident in 1974. Acquired House of Fraser group in mid 1980s, including the venerable Harrod’s department store, which he revitalized and refurbished. Sold it to Qatar Holding for a reported $2.4 billion in May 2010; now honorary chairman. Owner of the Hôtel Ritz in Paris, the Fulham football club, and a castle in Scotland. Anglophile has yet to be granted British citizenship.

The 5 Rules of Happiness

You know when you're happy, and certainly no one has to tell you when you're sad. But what is it that makes a person happy?

It is important to realize that what makes you happy might depress another person. There are people, because of guilt, a feeling they do not deserve what they have, or a feeling they will lose what they have that makes them unhappy when they should be happy.

Possessions are a poor measure of happiness. Possessions are subjective and relative to the individual and the individual's viewpoint. Instead, we will use a philosophy as an example.

This philosophy is about enjoying things you like, avoiding or changing things you do not like, and accepting what you cannot avoid or change by the skillful use of your viewpoint. The use of this philosophy, as embodied in the five rules, will allow you to test many problem areas in your life and find solutions. With this philosophy, you will be well on your way on your pursuit of happiness.

Rule Number One: If You Like a Thing, Enjoy It.

Now that seems outrageously simple. At first you might say, "That's ridiculous, of course if I like something I'm going to enjoy it." But when you stop to think about it you'll probably agree that there are many things in life that we like but don't enjoy. The reasons we don't enjoy things we like are (a) guilt, and (b) fear. You will not enjoy something you like if you feel guilty after having done the thing, or if you are fearful of the consequences of doing it.

Rule Number Two: If You Don't Like a Thing, Avoid It.

The second rule seems simple enough, but reflect for a moment on how many people are involved with things they do not like -- a job, a person, a vehicle, a type of food, any one of a thousand things -- and for some reason they don't avoid those things. "Well, I can't avoid it. I have to work there because I need the money." Or, "I have to be involved with this person for many valid reasons." How many justifications can you think of for not avoiding the things you do not like to do?

Rule Number Three: If You Don't Like a Thing, and You Cannot Avoid It, Change It.

Here again, the answer is simple: change it. But just as in avoidance we rationalize that we need something about it -- the money, the time, the security -- something is holding you to that particular thing if you don't like it, cannot avoid it, won't change it, but are still involved with it.

Rule Number Four: If You Don't Like a Thing, Cannot Avoid It, and Cannot or will Not Change It, Accept It.

Acceptance -- now there is a catch. How can you accept something you don't like? How in the world do you accept something that is 'unacceptable'? How do you accept a situation that you're not happy with? How do you accept a person that you're not happy with? Well, you really don't have to accept anything; you can, of course, be unhappy. If you don't like it, won't change it, cannot avoid it, and will not accept it, I guarantee that you will be unhappy. There are, however, five rules to the secret of happiness, and within the fifth lies the key.

Rule Number Five: You Accept a Thing By Changing Your Attitude Towards It.

You are the result of your viewpoints and attitudes. Everything is relative to the person experiencing it. There are no absolutes -- nothing is good, nothing bad, except as it relates to you. Nor is life good or bad. Life simply is. You change those things you wish by changing your viewpoint about them.

How easy!
How difficult!

Your attitudes and viewpoints are all part of your mind and once you develop the power of self mind control you will be the master of your own attitudes and viewpoints. Using these five rules you'll soon find yourself on the right path on the pursuit of happiness. You'll realize why people are unhappy. Eventually it will become automatic, and you'll find happiness a predominant state of mind. Once you realize the ease of acquiring this emotion, you develop an entirely new scale of highs and lows.

Unremitting happiness, of course, is not a possible or desirable state. According to the principle of rhythm, there is always an inflow and outflow, an ebb tide and a flood tide. You'll always have highs and lows -- there's no way to avoid that. However, your highs will be higher and your lows will be higher. You'll then find that what is a happy state for you might be a state of depression for someone unaware of the Five Rules of Happiness. 

Adapted from Burt Goldman