Dangote the richest African cements his place in history

By WINSLEY MASESE

Forbes Magazine calls him a billionaire and ranks him the richest African, with an estimated net worth of Sh1.36 trillion ($16.1 billion) as at March 2013. This also makes him the 43rd richest person in the world.

In Nigeria, they call him the golden child.

Aliko Dangote was born on April 10, 1957. His mother was the granddaughter of legendary Hausa businessman Alhassan Dantata who was believed to be the wealthiest man in West Africa at the time of his death in 1955. His father was Dantata’s business associate.

His grandfather named him Aliko, which means “The Victorious One Who Defends Humanity”.

But before he lived up to his name, he illustrated that he would stay true to his ancestry. While at Kano Capital Elementary School, a high-brow primary school, he began buying sweets and selling them at a profit to the other children.

Business studies

He proceeded to Alazahar University in Egypt and obtained a degree in business studies. He returned to work with his uncle.

It was while working under his Sani Dantata that he reignited his passion for business. At 21, he got a loan of about Sh2.9 million from his uncle, which he was to repay within three years - it took him six months.

He started by trading in commodities such as sugar, rice, salt, pasta, cotton, millet, vegetable oil, cocoa and textiles.

One of his business strategies for succeeding in the commodity market was to develop a strong distribution network and deliver his goods faster than his competitors did.

He expanded his trading business by venturing into manufacturing the same commodities he was importing.

He then registered the Dangote Group in 1977. The company has several subsidiaries across Africa and is involved in cement, sugar, salt, flour, pasta, noodles, polyproducts, logistics, real estate, telecommunications, steel, oil and gas, and beverages. It is today Nigeria’s largest industrial conglomerate.

Dangote serves as president and chief executive.

Dangote Cement is Africa’s largest cement manufacturer, with over 26,000 employees in Nigeria.

The company is constructing cement plants in Ethiopia, Zambia, South Africa, Senegal, Cameroon and the Republic of Congo. Dangote announced plans last year to construct plants in Iraq and Burma, and last week said he would construct a Sh35 billion cement factory in Kenya.

Dangote plans to sell a 20 per cent interest in his cement business on the London Stock Exchange by the end of 2014, pricing it at a value of $35 billion to $40 billion (Sh3.05 trillion to Sh3.5 trillion). If he succeeds, his company will be the world’s most valuable cement producer.

He credits his business acumen to his maternal grandfather.

“As his first grandson, he poured his business wizardry into me. I would not have been where I am today without him; a very great man, loving and caring,” he once said.

His success is greatly admired.

Nigerian President Goodluck Jonathan once said of him: “Aliko Dangote deserves more honour than those of us holding political office.”

Dangote has close ties with the political class.

“I am close to the people in power because I am one of the big businessmen in Nigeria. If we have the wrong people there, then all the money I have is useless. I do not want Nigeria to become another Zimbabwe so I am concerned about the political direction of my country, because if bad and inexperienced politicians control power in Nigeria, my wealth may turn into poverty and I am not ready to become a poor man.”

During an interview with American cable channel MTV, Dangote said of the youth: “The problem with the youth of today is that they want to jump and see themselves up there overnight.

“What you need to do is to be very focused as a person and be dedicated to what you are doing. Not take your business or job as something you must do, but take it as your hobby and do it better.”

And for those who want to be the next Dangote, he advises: “You must have a big heart and take calculated risks and be honest because your name is very important and a valuable asset.

“When there is life, there is hope and one can make it to the top.”

During an interview with CNN, Dangote said that besides creating a business success story in Africa, he has a desire to create jobs, saying his love for Nigeria runs deep.

“Nigeria is the best kept secret on how to make and invest and money,” he said.

Dangote has so far received 16 business awards, a number of honorary doctorate degrees and is a director on several boards.