Black billionaires

Aliko Dangote, the world's wealthiest black person.
Oprah Winfrey at the White House in 2010. She is the first female black billionaire and was the only black billionaire from 2004 to 2006

Black billionaires are individuals of Black African ancestry with a net worth of at least US$1 billion. According to Forbes 2018 ranking of the world's billionaires, Nigerian business magnate Aliko Dangote with a net worth of $13.8 billion is the world's richest black person.[1] Others on the list are Nigeria's Mike Adenuga with $4.6 billion,[2] American media mogul Oprah Winfrey with a net worth of $2.8 billion (2018), South African gold magnate Patrice Motsepe, with $2.9 billion, Nigeria's Folorunsho Alakija with $2.5 billion and Mo Ibrahim, a British billionaire of Sudanese Nubian ancestry,[3] who has been on the Forbes Billionaire list since 2008 and in 2012 had a net worth of $1.1 billion.[4]

In the years since, American investor Robert Smith, with a net worth of $4.4 billion, and American sports executive Michael Jordan, with $1.65 billion, have risen to the list. In 2018, Smith was ranked by Forbes as the 163rd richest person in America. He was No. 480 on Forbes 2018 list of the world's billionaires, with a net worth of $4.4 billion. In 2017, Smith was named by the magazine as one of the 100 greatest living business minds. In a 2018 cover story, Forbes declared him the wealthiest African-American, surpassing Oprah Winfrey. As of Forbes 2019, Robert F. Smith's net worth is $5 billion.

From 2001 to 2003, Forbes listed American television network executive Bob Johnson as a billionaire,[5] but dropped him after his fortune was split in his divorce.[when?][6] He returned to Forbes Billionaire list in 2007 with a net worth of $1.1 billion. In 2008 Johnson's wealth dropped again, this time to approximately $1.0 billion [7] and by 2009 he fell off the list again. Nigerian petroleum executive Femi Otedola briefly emerged as a billionaire in 2009, but did not remain one in subsequent years. He returned to the list in the company of a fellow Nigerian, sugar tycoon Abdul Samad Rabiu, in 2016, but both were dropped from the rankings the following year.[8]

Multiracial billionaires with significant black ancestry have also been identified over the years. Saudi Arabian billionaire Mohammed Al Amoudi, of Hadhrami Yemeni and Ethiopian descent, has been on the Forbes billionaire list since 2002 and in 2012 had a net worth of $12.5 billion.[9] Michael Lee-Chin of Canada, who is Jamaican of Chinese and Black ancestry was on the list from 2001 to 2010, but dropped off in 2011.[10] In 2013 Isabel Dos Santos who is of both Angolan and Middle Eastern ancestry made the list with a $2 billion net worth.

Of all the above-mentioned billionaires identified by Forbes, only Oprah Winfrey qualified for Forbes 2009's list of the world's 20 most powerful billionaires, a list which considered not only wealth, but also market sway and political clout. Winfrey was considered especially powerful because of her influence on American consumer choices and her pivotal role in getting Barack Obama elected.[11]

United States[edit]

Black-white wealth gap[edit]

According to sociologist Dalton Conley, there are two theories that explain the Black-White wealth gap. The “historical legacy thesis” contends that the current wealth gap was created by the “head start” that White people have had in amassing wealth and inheriting wealth from generations prior. [12] Continuous racial discrimination against Black Americans also contributes to this theory.[12] The “contemporary dynamics thesis” explains how modern phenomena, specifically systematic racism in the housing and credit markets, are the main source of the wealth gap. [12]

In 1994, the typical Black American family had a net worth of $9,800, while a typical White family had a net worth of $72,000.[12] By 1997, the median family income of African American families was up to $26,522, 55% of the $47,023 of White families.[12] Black wealth mostly consists of home equity and car ownership, while white wealth also includes financial assets, "the key to wealth accumulation". [12] For this reason, the wealth gap between blacks and whites has continuously grown since the civil rights movement of the 1950s and 1960s.[12]

Post-emancipation[edit]

In 1860, freed Black Americans owned approximately $50 million worth of land. [12] Land redistribution was promised as reparations for freed slaves by President Andrew Johnson after the Emancipation Proclamation. [12] This promise was not fulfilled for many. For those who did receive land, the ownership was temporary as land was eventually sold off to White individuals. [12]

Former slaves faced a slim job market and many were forced into sharecropping, a system in which laborers rent land from a landlord to grow crops and provide a share of their crops as rent. [12] Many blacks tried to escape this by getting wealthy and buying the land, but these attempts mostly failed.[13]

1900–1938[edit]

1900-1938 marked what is considered the “Golden Age of Black Business.” In response to Plessy v. Ferguson (1896) which upheld racial segregation laws, Black Americans established successful eateries, restaurants, hotels and banks. [14] The coalition of Black businesses and entrepreneurs was coined “Black Corporate America.” [14] During this time, Black businesses grossed sales of up to one million dollars. [14] In 1900, Booker T. Washington created the National Negro Business League and Maggie Lena Walker became the first American woman and first Black American woman to establish a bank in 1903. [14]

Greenwood, Tulsa in Oklahoma was an example of a prosperous Black neighborhood in the early 20th century and was one of the richest Black neighborhoods in the country. Known as “Black Wall Street”, Black attorneys and doctors were highly concentrated in the area, as were successful Black grocers, hotels and restaurants. [15] In 1921, "Black Wall Street" was destroyed in the Tulsa race riot, when white residents of Tulsa attacked it on the ground and by plane, dropping firebombs. Ten thousand black people were left homeless.

Black inventors such as George Washington Carver–who developed a system to improve soils after cotton planting–helped develop early ideas for technology, however they often had to sell their patents to corporate White America “because they did not have the same access to venture and development capital.” [14] Leading Black female entrepreneurs included Madame CJ Walker and Annie Turnbo-Malone. Walker invented several beauty products and was considered the wealthiest self-made woman in America in 1919. Turnbo-Malone also developed cosmetic products for Black women. [14]

1939–1990[edit]

In the period of 1939-1964, Black businesses grossed sales in the millions.[14] Black American entrepreneurs sought defense contracts–allowing them to produce materials to be used in the war–during World War II. [14] Although only a few received contracts, this marked the first time a large-scale consumer, the U.S. government, bought products from Black businesses. A 4$ million defense contract was given to The McKissick Brothers Construction Company to build an airbase at Tuskegee Institute to train the Black 99th Pursuit Squadron. The company employed approximately 2,000 Black employees. [14]

S.B. Fuller led Black Corporate America in the 1930s with his successful door-to-door sales business. He acquired several White companies which sold hair care products and was successful until the 1950s, when White consumers found out that Fuller was Black. The White consumers pulled out of the market immediately and Fuller went bankrupt. [14] In 1954 the Brown v. Board of Education decision, which desegregated schools, led to more widespread calls for economic equality. [14]

Black business sales first reached 100 million in 1965. [14] Protest prompted the federal government to create Black Capitalism initiatives such as President Nixon’s 1969 Executive Order that created the Office of Minority Business Enterprise. [14]

According to Dalton Conley, by 1971, Black banks had received $44.9 million in government deposits. [16] However these deposits, which were “unstable accounts from government agencies, eventually hurt Black banks because their volatility meant that they required higher servicing costs.” [16] "One study even found that such deposits were actually more costly to Black banks than their regular customers’ deposits.” [16]

Black business expanded by continuing to seek defense contracts. One example was electrical engineering company Jackson and Tull which received contracts from NASA and the U.S. Department of Defense in 1974. [14] Black innovators were also involved in the rise of the internet and technology. Nigerian immigrant Phillip Emegwali created 65,000 processor computer that produced 3.1 billion calculations per second, laying the groundwork for Apple’s Dual Processor Power Mac and IBM’s 65,000 processor supercomputer. He received the 1989 Gordon Bell Prize for supercomputing. [14]

1990–present[edit]

Starting in 1990 up to the present day, businesses in Black Corporate America have grossed sales in the billions of dollars. [14] Despite this upward trend, there was not a Black billionaire in U.S. dollars until 2001. The 2000 edition of Forbes 400, which documented individuals who amassed wealth from the tech boom, did not feature any Black individuals. [17] The 400 individuals on the list had a net worth of more than one trillion, which was more than the wealth of all 33 million Black Americans combined.[17]

However, the amount of African Americans earning degrees in business has increased since the 70s. “The number of African Americans earning bachelor’s degrees in business increased by 316.6% between 1976 and 2008, whereas the number of African Americans earning MBAs increased by 1,399%, from 1,549 to 23,220.” [18]

In 2001, BET (Black Entertainment Network) owner Robert L. Johnson became the first Black billionaire in American dollars, with a net-worth of $1.6 billion. The success of hip hop music and Black music videos stimulated Black Corporate America and launched BET to its success.[14] Prominent Black female entrepreneurs like Oprah Winfrey and Cathy Hughes saw success as they entered the realm of communications. Oprah became the first Black female billionaire in 2003. Cathy Hughes became the first Black American woman to take her company–Radio One– public on the New York Stock Exchange in 2004. [14]

As of 2019, there are 15 billionaires of full or mixed Black ancestry in the world. Out of the total 2,200 billionaires in the world, less than 0.77% of the U.S. dollar billionaires are Black.

Members[edit]

Wealth valuations by Forbes magazine

Year Black billionaires Bi/Multiracial billionaires with Black ancestry All billionaires
1996 0 0 423, Richest: Bill Gates $18.5 billion United States
1997 0 0 224, Richest: Sultan Hassanal Bolkiah $38 billion Brunei
1998 0 0 209, Richest: Bill Gates $51 billion United States
1999 0 0 298, Richest: Bill Gates $55 billion United States
2000 0 0 322, Richest: Bill Gates $60 billion United States
2001 1: Bob Johnson $1.6 billion United States 1: Michael Lee-Chin $1 billionJamaicaCanada[19] 538, Richest: Bill Gates $58.7 billion United States
2002 1: Bob Johnson $1 billion United States 2: 497, Richest: Bill Gates $52.8 billionUnited States
2003 2:
  • Bob Johnson $1.2 billion United States
  • Oprah Winfrey $1 billionUnited States[21]
2: Mohammad Al Amoudi $1.5 billionEthiopiaSaudi Arabia

Michael Lee-Chin $1.4 billionJamaicaCanada[22]

476, Richest: Bill Gates $40.7 billion United States
2004 1: Oprah Winfrey $1.1 billion United States 2:
  • Michael Lee-Chin $2.4 billion JamaicaCanada
  • Mohammad Al Amoudi $1.4 billion EthiopiaSaudi Arabia[23]
587, Richest: Bill Gates $46.6 billion United States
2005 1: Oprah Winfrey $1.3 billion United States 2:
  • Michael Lee-Chin $2.5 billion JamaicaCanada
  • Mohammad Al Amoud $2.5 billion EthiopiaSaudi Arabia
691, Richest: Bill Gates $46.5 billionUnited States
2006 1: Oprah Winfrey $1.4 billionUnited States 2:
  • Mohammad Al Amoudi $6.9 billion EthiopiaSaudi Arabia
  • Michael Lee-Chin $2.1 billionJamaicaCanada[24]
793, Richest: Bill Gates $50 billionUnited States
2007 2: 2:
  • Mohammad Al Amoudi $8 billionEthiopiaSaudi Arabia
  • Michael Lee-Chin $1.6 billionCanadaJamaica[26]
946, Richest: Bill Gates $56 billionUnited States
2008 5: 2: Mohammad Al Amoudi $9 billionEthiopiaSaudi Arabia

Michael Lee-Chin $1.8 billionJamaicaCanada[30]

1,125, Richest: Warren Buffett $62 billionUnited States
2009 5: 2: Mohammad Al Amoudi $9 billionEthiopiaSaudi Arabia

Michael Lee-Chin $1 billionJamaicaCanada[31]

793, Richest: Bill Gates $40 billionUnited States
2010 4:
  • Oprah Winfrey $2.4 billion United States
  • Patrice Motsepe $2.3 billion South Africa
  • Adam Sedik $2.1 billionNigeria
  • Mo Ibrahim $2 billion SudanUnited Kingdom
2: Mohammad Al Amoudi $10 billionEthiopiaSaudi Arabia

Michael Lee-Chin $1 billionJamaicaCanada[32]

1,011, Richest: Carlos Slim Helu & family $53.5 billion[33] Mexico
2011 5: 1: Mohammad Al Amoudi $12.3 billionEthiopiaSaudi Arabia 1,210, Richest: Carlos Slim Helu & family $74 billionMexico
2012 [1] 5: 1: Mohammad Al Amoudi $12.3 billionEthiopiaSaudi Arabia 1,210, Richest: Carlos Slim Helu & family $74 billionMexico
2013 5: 2: 1,426, Richest: Carlos Slim Helu & family $73 billionMexico
2014 8: 2:
  • Mohammad Al Amoudi $15.3 billion EthiopiaSaudi Arabia
  • Isabel Dos Santos $3.7 billionAngola
1,645, Richest: Bill Gates $76 billionUnited States
2016 11: 2:
  • Mohammed Al-Amoudi, $8.4 billion EthiopiaSaudi Arabia
  • Isabel Dos Santos, $3.1 billion Angola
1,810, Richest: Bill Gates $75 billion
2019 12: 3:
  • Mohammed Al-Amoudi, $8.4 billion EthiopiaSaudi Arabia
  • Isabel Dos Santos, $2.3 billion Angola
  • Michael Lee-Chin $1.9 billionJamaicaCanada
2,153, Richest: Jeff Bezos $131 billion United States


References[edit]

  1. ^ a b Nsehe, Mfonobong (March 7, 2012). "The Black Billionaires 2012". Forbes.
  2. ^ a b c d e f "The Nation - Are Dangote and Adenuga truly Nigeria's richest men?". 16 March 2011. Retrieved 25 October 2017.
  3. ^ "Home - East African Business Week Newspaper: The region's leading business newspaper". Busiweek.com. Retrieved 25 October 2017.
  4. ^ a b c d e "#1638 Mohammed Ibrahim". Forbes.com. Retrieved 25 October 2017.
  5. ^ Brett Pulley (2001-10-08). "The Cable Capitalist". Forbes. Retrieved 2006-05-11.[permanent dead link]
  6. ^ Michael P. Regan (2004-02-27). "Billionaires' ranks open to 'Harry Potter' author". Arizona Daily Star. Retrieved 2006-05-11.
  7. ^ a b "#1062 Robert Johnson". Forbes. 2008-03-05.
  8. ^ Obusan, Claire. "In Pictures: New Billionaires". Forbes.
  9. ^ "#116 Mohammed Al Amoudi". Forbes.
  10. ^ "Michael Lee-Chin". Forbes.
  11. ^ Live, Nigeria News (2019-05-25). "13 Black Billionaires Who Made Forbes List in 2019". NAIJA NEWS TODAY & LATEST BREAKING NEWS ™. Retrieved 2019-06-04.
  12. ^ a b c d e f g h i j k Conley, Dalton (2001). ""Decomposing the Black-White Wealth Gap: The Role of Parental Resources, Inheritance, and Investment Dynamics."". Sociological Inquiry. 71.1: 39–66. doi:10.1111/j.1475-682x.2001.tb00927.x.
  13. ^ Gaido, Daniel (2000). ""A Materialist Analysis of Slavery and Sharecropping in the Southern United States."". Journal of Peasant Studies. 28.1: 55–94. doi:10.1080/03066150008438758.
  14. ^ a b c d e f g h i j k l m n o p q r Walker, Juliet (2004). ""War, Women, Song: The Tectonics of Black Business and Entrepreneurship, 1939–2001."". The Review of Black Political Economy. 31.3: 61–115.
  15. ^ Messer, Shriver, C., T. (2018). ""The Destruction of Black Wall Street: Tulsa's 1921 Riot and the Eradication of Accumulated Wealth."". American Journal of Economics and Sociology. 77.3-4: 789–819.
  16. ^ a b c Weems, Robert (June 2018). "The Color of Money: Black Banks and the Racial Wealth Gap". The American Historical Review. 123: 966. doi:10.1093/ahr/123.3.966.
  17. ^ a b ""No Blacks Among the DotCom Billionaires."". The Journal of Blacks in Higher Education. 27: 63–63. 2000.
  18. ^ Bradford, William (2014). ""The 'Myth' That Black Entrepreneurship Can Reduce the Gap in Wealth Between Black and White Families."". Economic Development Quarterly. 28.3: 256.
  19. ^ "Forbes.com: Forbes World's Richest People 2001". Web.archive.org. 28 October 2006. Retrieved 25 October 2017.
  20. ^ "Forbes.com: Forbes World's Richest People 2002". Web.archive.org. 19 May 2008. Retrieved 25 October 2017.
  21. ^ "Forbes.com: Forbes World's Richest People 2003". Web.archive.org. 1 January 2011. Retrieved 25 October 2017.
  22. ^ "Forbes.com: Forbes World's Richest People 2003". Web.archive.org. 21 August 2007. Retrieved 25 October 2017.
  23. ^ "Forbes.com: Forbes World's Richest People 2004". Web.archive.org. 28 April 2006. Retrieved 25 October 2017.
  24. ^ "#365 Michael Lee-Chin". Forbes.
  25. ^ "#840 Robert Johnson". Forbes. 2007-03-08.
  26. ^ "#618 Michael Lee-Chin". Forbes. 2007-03-08.
  27. ^ "#462 Oprah Winfrey". Forbes. 2008-03-05.
  28. ^ "#503 Patrice Motsepe". Forbes. 2008-03-05.
  29. ^ "#462 Mohammed Ibrahim". Forbes. 2008-03-05.
  30. ^ "#677 Michael Lee-Chin". Forbes. 2008-03-05.
  31. ^ "#701 Michael Lee-Chin - The World's Billionaires 2009". Forbes. 2009-03-11.
  32. ^ "#937 Michael Lee-Chin". Forbes. 2010-03-10.
  33. ^ [1][dead link]
  34. ^ Nsehe, Mfonobong. "The Black Billionaires 2016". Forbes. Retrieved 2017-07-21.
  35. ^ Nsehe, Mfonobong. "The Black Billionaires 2019". Forbes.