Patrice Motsepe, the South African Billionaire CAF President

Patrice Tlhopane Motsepe is a South African billionaire mining magnate. He is the founder and executive chairman of African Rainbow Minerals. He also sits on several company boards including being the non-executive chairman of Harmony Gold, the 12th largest gold mining company in the world.

Who is Patrice Motsepe?

Patrice Motsepe has always come first or been the first at almost everything. The accolade by Forbes for being South Africa’s first black billionaire to have a personal fortune of at least US$ 1 billion is but one of many.

Motsepe, who is a lawyer by training is the first black to be promoted as a partner at the prestigious South African law firm Bowman & Gilfillan shortly after South Africa independence in 1994.

Black economic empowerment

Motsepe is one of the foremost beneficiaries of the second wave of black economic empowerment initiatives that took place in South Africa. The first, second, and third waves of black economic empowerment from 1995 to 2010 saw legions of black empowerment outfits that were formed by politically well-connected individuals.

These black economic empowerment upstarts have all but fizzled out. Only a few remain that have stood the test of time. And Patrice Motsepe’s African Rainbow Minerals Limited is one of them. ARM has grown to become a fully-fledged diversified mining company with operations in South Africa, Zambia, and Canada.

Its portfolio is diversified in terms of commodities. ARM has interests in gold through its shareholding in South African gold miner Harmony Gold Limited. It has substantial platinum assets, coal, base metals, and exploration. Patrice Motsepe in 2013 was the first African billionaire to sign the giving pledge. Where billionaires and other wealthy individuals pledged to give at least half of their wealth to worthy causes.

Family

Motsepe comes from a prominent family in Garankuwa which is a rural area near Pretoria in South Africa where people of the Tswana dialect come from which would explain his middle name Thlopane.

His father ABC Motsepe operated general dealer shops in Garankuwa and the young Motsepe cut his teeth working in his father’s shops during school holidays. Motsepe is married to Precious Moloi, a physician and fashion entrepreneur, and they have three children.

He is by no means the only person who is successful from his family. His two siblings are highly accomplished individuals in their own right.

Motsepe’s sister Tshepo Motsepe, a physician and businesswoman, is married to Cyril Ramaphosa, the President of South Africa. She became the First Lady of South Africa in 2018.

His other sister Bridgette Radebe, a mining magnate. She’s married to former minister Jeff Radebe, an influential member of the ruling African National Congress (ANC) party. Radebe served as Minister of Public Works, Minister of Public Enterprises, Minister of Transport, Minister of Mineral Resources and Energy, Minister of Justice and Constitutional Development, and Minister in the Presidency under different presidents.

Patrice Motsepe Biography

Patrice Tlhopane Motsepe (born Jan. 28, 1962, Soweto, S.Af.) South African businessman and the country’s first black billionaire. Motsepe made his fortune through mining interests that eventually expanded in 2004 to form a successful multifaceted mining company, African Rainbow Minerals (ARM).

In spite of having grown up in the apartheid era, Motsepe fared better than many other South African blacks. His father, once banished for voicing opposition to apartheid, became a successful liquor distributor by affiliating with South African Breweries. Throughout his youth Motsepe worked at his father’s store and beer hall. A job that gained him essential lessons in business management and exposed him to the lives of the mine workers who bought their daily provisions from him.

Motsepe and his six siblings attended a Roman Catholic boarding school in Eastern Cape province. He then earned a bachelor’s degree in law from the University of Swaziland. Motsepe also earned a law degree from the University of the Witwatersrand, Johannesburg. He joined the law firm of Bowman Gilfillan in 1988 and became a partner in 1993. Having worked as a visiting attorney with the American law firm McGuire, Woods, Battle & Booth in 1991–92.

His entry into mining

When Bowman Gilfillan reorganized in the new postapartheid environment, Motsepe left to apply his business acumen to the mining trade. He believed that he could use management techniques, such as low base pay coupled with production incentives, to transform less-productive shafts into moneymaking operations. Even more important, he found ways to benefit from the country’s Black Economic Empowerment (BEE) laws. That required companies to have a minimum 26 percent black ownership before a mining license would be granted.

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In 1994 Motsepe founded a mine services company, Future Mining, and applied all of his life experience—knowledge of the mining trade and its workers, school connections, understanding of political and legal structures, and a shrewd spirit of entrepreneurship—to his new work. In 1997 he launched ARMgold, which in 2003 merged with Harmony and acquired Anglovaal Mining (Avmin).

Motsepe was named chairman of the newly reorganized ARM in 2004, and by 2006 the company had expanded beyond gold and other metals into coal mining. Motsepe’s growing wealth allowed him to purchase a 51% interest in the Mamelodi Sundowns football club in 2003. And the next year he gained full control of the club.

Patrice Motsepe Wife – Precious Moloi-Motsepe

Precious Moloi-Motsepe born 2 August 1962, is the wife of Patrice Motsepe. She is a South African philanthropist and fashion entrepreneur and one of the richest women in South Africa. Precious started her career as a medical practitioner, specializing in children and women’s health. In September 2019 she was elected Chancellor of the University of Cape Town, succeeding Graça Machel, and beginning her ten-year term on 1 January.

In 2007, she established African Fashion International, an events, fashion and lifestyle company to promote pan-African designers to international audiences. And endorsed the African fashion industry as a pathway to economic development for young people and women. In 2013, she joined the Giving Pledge with her husband, committing to give half of their family wealth to charitable causes. In the same year she was on the inaugural cover of Forbes Women Africa. And has since been listed as of the 50 most powerful women on the continent by Forbes Magazine Africa. Click here to read about her and works.

Patrice Motsepe Net Worth

According to recent data from Forbes, his net worth was $2.3 billion as of December 10, 2023. However, the latest figures reveal a substantial rise, with Motsepe’s net worth reaching $2.7 billion at the close of Friday’s market trade.

Breaking down the numbers, the 61-year-old mogul initiated the year with a $2.6 billion net worth, showcasing a $100 million increase in the current assessment.

Motsepe’s wealth is intricately tied to his 40.37% stake in African Rainbow Minerals (ARM), a South African mining company with diversified interests in iron, coal, steel, copper, gold, platinum, and other precious metals.

The surge in Motsepe’s net worth is attributed in part to the revaluation of private investments, with a significant impact coming from his holdings in TymeBank, South Africa’s leading digital bank.

TymeBank secured $77.8 million in funding during a pre-series C round in 2023, attracting investments from international entities like Norrsken22 and Blue Earth Capital.

While Motsepe faces challenges in his mining ventures, particularly with African Rainbow Minerals and African Rainbow Capital Investments, his diversified portfolio showcases resilience and strategic gains in key sectors.

Additionally, his 7.8% stake in the financial services giant Sanlam has risen by 1.56% this year, offsetting losses in other equity holdings on the Johannesburg Stock Exchange (JSE).

How Patrice Motsepe Made His Billions

Motsepe and mining

Motsepe believed he could use management techniques, particularly low base pay with production incentives, to transform less-productive shafts into profitable operations.

In 1994, he founded Future Mining, a mining services company which specialised in turning around unprofitable mining shafts.

African Rainbow Minerals (ARM) was launched by Motsepe in 1997 and was listed on the Johannesburg Stock Exchange in 2002.

It merged with Harmony Gold and acquired Anglovaal Mining’s unproductive mines in 2003.

After this merger, Motsepe took up the role of executive chairman of ARM – a position he holds to this day.

In 2002, Motsepe was voted South Africa’s Business Leader of the Year by the chief executive officers of the top 100 companies in South Africa.

In the same year, he was the winner of the Ernst & Young Best Entrepreneur of the Year Award.

The success of ARM catapulted Motsepe onto Forbes’ billionaire list in 2005.

Capitalising on BEE

Ubuntu-Botho Investments (UBI), Motsepe’s investment vehicle, acquired a significant stake in Sanlam as the insurer’s black empowerment partner in 2004.

Reports from the time note that Motsepe had a difficult decision in choosing between partnering with Sanlam or Old Mutual as an empowerment partner.

Sanlam won Motsepe by pointing out that Old Mutual had effectively run away from South Africa and moved its headquarters and primary listing to London. Sanlam said that it would never leave the country.

As of 2022, UBI owns 17.8% of Africa’s largest non-banking financial services group, and Motsepe is currently deputy chairman of Sanlam.

Sanlam claims the empowerment deal to have created R15 billion net value for Ubuntu-Botho investors, placing it in the top five empowerment deals in terms of value created.

The deal created 700 black millionaires, according to Sanlam.

African Rainbow Capital and other ventures

In 2016, Motsepe launched African Rainbow Capital (ARC) as a listed investment holding company. Its holdings include major stakes in Rain and Tyme Bank.

The success of ARM in the early 2000s enabled Motsepe to purchase 51% of Mamelodi Sundowns in 2003, acquiring the football club outright a year later.

Motsepe acquired a share in the Blue Bulls Company in 2019 and is a joint-owner with Johann Rupert’s Remgro and the Blue Bulls Rugby Union.

He also has a history of philanthropy, being the first African to sign the Bill Gates and Warren Buffett giving pledge in 2013. This means that half of his wealth will be given to charity.

Building big business

ARMGold listed on the JSE in 2002 and merged with Harmony Gold Mining in 2003 to form the world’s 5th largest gold producer. ARMGold then merged with its previous partner Anglovaal Mining (Avmin). Avmin changed its name to African Rainbow Minerals (ARM) and Motsepe became the founder and executive chairman of ARM.

He did not stop with mining. In 2003, Motsepe created Ubuntu-Botho Investments (UBI), and he currently owns 55% of it.

In 2004 UBI entered into a BEE deal with insurance and financial services company Sanlam. UBI initially acquired a 10% stake in Sanlam for ZAR1.3bn in 2004, which increased to 14.5% by 2018 through reinvesting dividends and share buybacks.

In 2021, UBI again increased its shareholding in Sanlam through the acquisition of a 25% stake in its asset management business, Sanlam Investment Holdings, for a reported ZAR5.6bn, and now has an 18.1% voting stake in Sanlam as its BEE partner. Motsepe is currently the deputy chairman of Sanlam.

The critics

Sanlam’s latest multibillion-rand deal with Motsepe’s UBI attracted much controversy, according to News24. Some competitors of Sanlam were concerned that UBI’s deals would give Sanlam an unfair advantage in the financial services market, especially in the black segment. Critics pointed out that Motsepe was using his political connections and influence to secure lucrative deals with established white-owned companies like Sanlam, writes BusinessLIVE.

UBI in 2015 started African Rainbow Capital (ARC), a wholly-owned subsidiary of UBI. ARC’s joint chief executive is Johan van Zyl, a former executive of Sanlam.

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ARC has holdings in more than 40 companies, including TymeBank (49%), industrial group Afrimat, agricultural company BKB, telecommunications company Rain, luxury property estate Val de Vie, and a minority stake in Alexander Forbes (14.9%), the pension fund administrator. ARC also has a 20% stake in Cape Town-based exchange A2X, according to Entrepreneur Hub SA.

TymeBank, a digital bank that offers low-cost banking services, is partnered with the Zion Christian Church (ZCC), the largest African-initiated church in Southern Africa with over 12 million members.

Energy entrepreneur

UBI also owns 100% of African Rainbow Energy and Power (AREP). Founded by Motsepe in 2012, AREP is focused on clean energy solutions including renewables, hydro, gas, and complementary transmission investments. AREP has invested in various energy projects and companies, such as SOLA Group, a solar photovoltaic (PV) company, in which AREP acquired a controlling 40% stake in 2020, writes Daily Investor.

AREP also holds a 15% shareholding in SunEdison, a 30% equity in the Ngodwana Biomass Project from Fusion Energy. And owns a 22.5% stake in wind power generators, Kangnas and Perdekraal East wind farms.

In 2021, AREP formed a joint venture with Absa Group Limited, a diversified financial services group. This led to the creation of African Rainbow Energy (ARE), an African-led renewable energy investment platform. ARE has approximately ZAR6.5bn of gross assets, covering 31 renewable assets, making it one of the largest and most diverse independently owned energy businesses in South Africa. AREP holds 51% of the shares in ARE, while Absa holds 49% of the shares.

Motsepe Foundation

The Motsepe Foundation was founded in 1999 by Mr Patrice Motsepe and Dr Precious Moloi-Motsepe. In 2013 the Motsepe family were the first on the African continent to join the Giving Pledge. A pledge started by Bill and Melinda Gates and Warren Buffet. The Foundation was founded on the philosophy of ‘ubuntu’. The African concept of giving and caring for your neighbour and other members of your community.

This selfless and compassionate quality is part of the age-old African culture and expresses the core value of humanity as goodness to our fellow men . The act of giving back has been and still is an integral part of our moral duty and collective responsibility. It is a concept that has held African families and communities together for generations, despite the continent’s many challenges. We are proud to pass it on to the next generation.

Core values and ethics

1. Success comes from serving with humility and respecting relationships with internal and external partners.
2. The Foundation aims to consistently conduct itself in a manner that displays honesty, integrity, commitment and credibility.
3. It continuously strives to be the best in everything it does
4. It is driven by a commitment to helping others help themselves

Mission

1. To improve the quality of life for all, including the unemployed, women, youth, workers and marginalised communities in South Africa.
2. To support projects that have the potential to assist beneficiaries in becoming self-reliant.
3. To build non-racialism in South Africa. Promote respect for diversity and encourage all races and all people of different faiths and cultures to move forward.

CAF President

Patrice Motsepe, the South African billionaire was elected president of CAF in Rabat, on Friday, 12 March, 2021.

In his acceptance speech, he said, “I’m absolutely confident that working together we will indeed succeed to make African football to be amongst the best in the world.”

Dr. Motsepe who becomes the seventh (7th) person to occupy the position of CAF President. He began his four-year term after being elected unopposed by the Member Associations of CAF. He replaces former president Malagasy-born Ahmad Ahmad who spent 4 years at that same position (2017-2021).

His CV as a club president

Despite his large fortune in the gold mines industry, Patrice Motsepe entered the football business in the 2000s. In 2004, he bought the football club Mamelodi Sundowns based in Pretoria. The club won the CAF Champions League in 2016 and the African Super Cup in 2017 and several other awards. A track record that gave him wings as he started seeing himself on the roof of African football.

Prior to Dr Motsepe’s engagement for the battle for CAF Presidency. Danny Jordaan, president of the South African Football Association said:

“We are convinced that his business acumen, his strict respect for governance, legal training, his global commercial network, his commitment and his love for African and world football makes him a revolutionary choice for the leadership of African football”.

CAF board

• President: Patrice Motsepe
• Secretary General: Véron Mosengo-Omba (Congo/Switzerland)
• 1st Vice-President: Augustin Senghor (Sénégal)
• 2nd Vice-President: Ahmed Yahya (Mauritania)
• 3rd Vice-President: Suleiman Waberi (Djibouti)
• 4th Vice-President: Seidou Mbombo Njoya (Cameroon)
• 5th Vice-President: Kanizat Ibrahim (Comores)

Recognition

Motsepe won South Africa’s Best Entrepreneur Award in 2002. In 2004, he was voted 39th among the South African Broadcasting Corporation’s Great South Africans. In 2008, he was reported as the 503rd-richest person in the world, according to the Forbes 2019 list of The World’s Billionaires. Then ranked as the 962nd-wealthiest person in the world, and the third-wealthiest South African for 2019. In 2020, Motsepe was ranked as the 1,307th-wealthiest person in the world by Forbes, with a reported fortune of US$2.1 billion.

Controversy

In January 2020, at a World Economic Forum dinner in Davos, Patrice Motsepe publicly told US President Donald Trump that “Africa loves him”. Faced with the indignant reactions that this statement provoked throughout the African continent. The billionaire apologised, explaining “I do not have the right to speak on behalf of anybody except myself”

References

• https://theexchange.africa/money-deals/patrice-motsepe-how-made-billions/
• https://www.motsepefoundation.org/about-us/
• https://www.britannica.com/biography/Patrice-Tlhopane-Motsepe
• https://www.intellinews.com/power-player-profile-south-african-billionaire-entrepreneur-patrice-motsepe-296664/