Africa's newest member of the Billionaire club, and the richest black person alive just did it again...hate him or love him, he is good.
My Analysis: For those accusing Dangote of patronage as his sole source of wealth, well this doesn't look like patronage to me. It looks exactly like the kind of shrewd business decisions and the vision we have come to expect from Aliko. If properly analyzed this is a great deal of immense proportions, likely to double Aliko's networth in the next couple of years. Here he is sitting on a pile of cash from his Nigerian IPO, and seeking where best to put it- he is directing it at a diamond in the rough: the SA cement market. For those who do not know, as soon as the China Olympics is over, South Africa will be the next place to be. With the number of construction works expected to go into building new stadiums, infrastructure and support facilities for the World Cup 2010, one can expect Sephaku's cement to be in high demand. But why will Sephaku want Dangote? For one, he has a proven business track record, plus the fact that he is in position to absorb excess inventory if need be to the fast expanding Nigerian market. Add this to the fact that the current global credit crunch makes easy money like the type Dangote is providing hard to come by, especially for a cyclical business like Cement and an unknown commodity like a black businessman in South Africa and you see a deal made in heaven. Let those who have ears let them hear.
The best way to play South Africa and other African economies waiting to explode (investing with the mentality driving this mogul?) if you live in the US? Either you invest directly back home or you buy GAF- an ETF with exposure to SA, Nigeria, and the Middle East
trading on AMEX especially when it is 14 points below its 52 week high. ___________________________________