Patrice Motsepe
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Visionaries - February 4, 2022

How Africa’s 9th Richest Person, Patrice Motsepe, Made His Billions

Motsepe is Africa's 6th richest person who has made a fortune from the mining, finance and sports industries.

Patrice Motsepe has made a fortune from the mining industry, becoming the first black African on the Forbes list in 2008. This serial entrepreneur has attained remarkable milestones in the finance, sport and advocacy industries. He is Africa’s 9th richest person with a net worth of $3.1 billion.

Early Life

Motsepe was born to Kgosi Augustine Motsepe, chief of the Tswana people of South Africa. He gained a Bachelor of Arts degree at the University of Swaziland and a law degree from the University of the Witwatersrand. And went on to specialise in mining and business law.

His Journey in Business

He joined the legal firm, Bowman Gilfillan, as the first black partner in 1994, the same year Nelson Mandela was elected as the country’s first black president. While the new government was promoting black empowerment and entrepreneurship, Motsepe founded Future Mining, which provided contract mining services such as cleaning gold dust from inside mine shafts for the Vaal Reefs Gold mine and implemented a worker remuneration system that included a low base salary combined with a profit-sharing bonus.

Mining

Following the drastic fall in gold prices in 1997, Motsepe struck a favourable deal that saw him acquire marginal gold mines from AngloGold with payment to be completed along the line. Motsepe was able to redeem his debt by selling six gold mine shafts to AngloGold for $7,7 million, allowing him to repay the loan with future revenues from the firm now known as African Rainbow Minerals.
In 1999 he teamed up with two of his associates to establish Greene and Partners Investments. Motsepe’s position in South Africa’s mining industry has been bolstered by the Black Economic Empowerment (BEE) policies which were enacted after the 1994 elections. In order to be eligible for a mining licence, a company must have at least 26% black ownership.

African Rainbow Minerals merged with Harmony Gold Mining Ltd. in 2002, and the firm was renamed ARMgold when it was listed on the JSE Security Exchange. Motsepe is also the founder of African Rainbow Minerals Platinum (Proprietary) Limited and ARM Consortium Limited, which eventually shared ownership with Anglo American Platinum Corp Ltd on an equal basis.
Motsepe has been the Chairman of Teal Exploration and Mining Incorporated since 2005. He is also chairman of Ubuntu-Botho Investments, the non-executive chairman of Harmony Gold Mining Co Ltd and the deputy chairman of Sanlam Ltd. Motsepe was the president of the Chamber of Commerce and Industry of South Africa.

Finance

Motsepe founded Ubuntu-Botho Investments (UBI) in 2003. And in 2019 he owned 55 percent of the firm. In 2004, Sanlam, an insurance and financial services firm, entered into a BEE agreement with UBI. When the loan was paid off in 2014, UBI acquired 13.5 percent of Sanlam, but as a BEE partner, UBI had an 18.1 percent voting stake in Sanlam. Motsepe has been on the boards of Absa Group since 2004 as a non-executive director.

His Path to CAF Presidency

Patrice Motsepe owns Mamelodi Sundowns F.C., a Premier soccer league team. He purchased a 37 percent share in the Blue Bulls Co. in November 2019. In November 2020, he stated that he will run for President of the CAF and was soon accused of being actively supported by FIFA. Patrice Motsepe was elected on March 12, 2021, after all the other four candidates withdrew.
His Expertise in Business Advocacy

He was selected as the interim head of the Black Business Council in 2011. He is a founding member and past president of Business Unity SA (BUSA), one of South Africa’s most powerful business advocacy and lobbying groups.

READ ALSO: How African Billionaire Nassef Sawiris Made His Fortune

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