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Aliko Dangote: 5 Things You Can Learn From Africa's Richest Man


With a net worth of $16.5 billion, Aliko Dangote, of Lagos, Nigeria, is the richest man in Africa. To get a sense of just how staggering that figure is, consider that Dangote's fortune is 2.9% of Nigeria's gross domestic product. For comparison, the richest man in American history, John D. Rockefeller, had a net worth of 1.5% of the U.S. GDP in 1937. Take it a step further, and if an American had a net worth of 2.9% of the U.S. GDP today, that person would be worth $500 billion.
How does someone build such a massive net worth built, and what lessons can we learn? 
1. Invest in what you know 
Dangote learned from one of the oldest investing lessons in the book. Born in 1957, he was exposed to the entrepreneurial spirit at a young age..He was raised in Kano State, Nigeria, by his grandfather, who himself became one of the wealthiest men in the area selling commodities. 
After graduating from Egypt's Al-Azhar University, the 21-year-old took a $3,000 loan from his uncle and set out on his own, but he didn't stray far from the family business. Dangote used the loan to import rice, sugar, and cement from overseas at wholesale prices and then sell locally at significant markups. This was a business Dangote understood thanks to his grandfather, and he was able to make the venture an immediate success. According to Warren Cassel at Investopedia, Dangote Group "had grown into one of the largest trading conglomerates operating in the country" by 1990. 
2. Find companies that create value 
Dangote's business flourished for 20 years, but he saw the opportunity to shift directions, fulfill a dire need. and grow even more. Nigeria was at the end of a 15-year stretch of military rule, and the new president, Olusegun Obasanjo, had promised to protect local industry, which set the stage for Dangote to make his move. "In a country where imports constitute the vast majority of consumed goods," the Dangote Group website states, "a clear gap existed for a manufacturing operation that could meet the 'basic needs' of a vast and fast growing population." 

Having begun as an importer and trader of commodities, Dangote already had a strong distribution network, so he had a distinct competitive advantage as his company transitioned into manufacturing flour, pasta, and sugar. 
3. Harness the power of brands 
The distribution network was an important piece of the puzzle, but as Dangote has said, "To succeed in business you need to build a brand and never destroy it." Whether it was a Donald Trump-like flair or a desire to capitalize on name recognition built from his years as a commodities trader, Dangote branded the products with his name. 


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