Africa’s first Black billionaire and the wealthiest Black individual in Southern Africa, Patrice Motsepe, has seen his wealth figures plummet by $100 million in just 8 days, driven by a sharp decline in the market value of his stake in his mining group — African Rainbow Minerals.
According to Forbes, the U.S. business magazine that tracks the fortunes of the world’s ultra-high-net-worth individuals (UHNWIs), Motsepe who became the continent’s first Black billionaire in 2008 — thanks to a fortune amassed in the mining industry through ARM — has seen his net worth decline by $100 million from $2.4 billion on Nov. 14 to $2.3 billion.
Patrice Motsepe loses $900 million year-to-date as ARM stake slumps
The $100-million slump in his fortune, which translates to an average daily loss of $12.5 million since Nov. 14, takes his year-to-date wealth loss to $900 million — making him one of the many African billionaires that have lost close to a billion dollars since the beginning of the year.
The decline in his wealth is closely linked to the sustained downturn in the market value of his 40.37-percent stake in ARM, a leading South African mining conglomerate involved in various mining projects encompassing iron, coal, copper, gold, platinum, and other precious metals.
The leading mining group with strategic interests spanning various mining projects has been grappling with operating challenges such as rail logistics problems, reduced production levels, and weaker commodity prices resulting in disappointing financial performance.
ARM share price dip affects Patrice Motsepe’s billion-dollar fortune
In recent times, ARM shares on the Johannesburg Stock Exchange have dropped from R177.25 ($9.498) on Nov. 14 to R167.85 ($8.995) — this decline has led to a notable decrease in the market value of Motsepe’s 40.37 percent stake in the mining conglomerate.
Despite the recent $100-million slump in his net worth, Patrice 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 key place among the world’s Black billionaires with his present fortune of $2.3 billion making him the 1,322nd richest individual globally and the ninth-richest person on the African continent trailing Egypt’s second-richest man Naguib Sawiris, and Issad Rebrab, the founder of Algeria’s biggest privately-held company.