Africa’s first Black billionaire Patrice Motsepe faces $900-million loss in 2023
Africa’s first Black billionaire Patrice Motsepe, the wealthiest Black individual in Southern Africa, has witnessed a staggering $900-million decline in his net worth since January 2023, driven by a sustained decline in the market value of his equity holdings.
According to Forbes, Motsepe, who became the continent’s first Black billionaire in 2008, thanks to a fortune amassed in the mining industry, has experienced a notable decrease in his net worth, which stands at $2.3 billion at the time of this report, down from $3.2 billion at the start of the year.
The $1-billion decrease in Motsepe’s wealth can be directly linked to the decline in the market value of his substantial 40.37-percent stake in African Rainbow Minerals (ARM).
ARM, a leading South African mining group with strategic interests spanning various mining projects encompassing iron, coal, copper, gold, platinum, and other precious metals, has grappled with formidable challenges, resulting in a disappointing financial performance.
The share price of ARM on the Johannesburg Stock Exchange, has declined from R288 ($15.22) on Jan. 1 to R170.1 ($8.99) at the time of drafting this report, thus causing a significant slump in the market value of Motsepe’s stake in the mining conglomerate, which constitutes a significant portion of his wealth.
Despite this recent decline in his net worth, Motsepe retains his status as the wealthiest Black individual in Southern Africa and remains among the richest individuals on the African continent. He also holds a prominent place among the world’s Black billionaires.
The leading South African billionaire is set to receive a final dividend of R1.088 billion ($56.5 million) from his 40.37 percent stake in ARM.
This dividend, scheduled for disbursement on Oct. 9, 2023, marks a considerable decrease compared to the R1.78 billion ($103 million) in dividends he received last year, a decline attributed to ARM’s reported seven percent profit downturn.