Africa’s first Black billionaire, Patrice Motsepe, has seen his net worth decline by another $100 million in just six weeks, adding to an earlier $100 million plunge this year.
According to the U.S. business magazine, Forbes, Motsepe, who became Africa’s first Black billionaire in 2008 thanks to his mining ventures, has seen his net worth decline from $2.6 billion on Feb. 23 to $2.5 billion.
Motsepe’s wealth drops $100 million
The $100-million decline in Motsepe’s fortune which comes after a notable decrease of $100 million in his wealth in February, is attributed to the decline in the market value of his 40-percent stake in African Rainbow Minerals (ARM), a leading South African mining group with diversified interests in various mining projects.
In recent times, ARM shares have fallen from R173.32 ($9.27) on Feb. 23 to R161.70 ($8.65) at the time of writing, eroding the market value of Motsepe’s stake in the mining conglomerate. The decline is a significant blow to Motsepe’s wealth, as his holding in ARM represents a substantial portion of his net worth.
ARM expands into North American copper market
The sustained decline in ARM’s share price and market capitalization stems from investor reaction to the group’s recent financial performance. Profits slumped 43 percent year-over-year, dropping from R5.17 billion ($275.5 million) in H1 2023 to R2.96 billion ($157.8 million) in the corresponding period of its 2024 fiscal year.
In a strategic move to bolster operations and lift earnings, ARM announced its entry into the North American copper market by acquiring a 15 percent stake in Toronto-listed exploration company Surge Copper. The move aligns with ARM’s strategy to capitalize on surging copper demand amid the global shift toward clean energy solutions.
Despite the recent share price weakness, Motsepe remains the wealthiest Black individual in Southern Africa and continues to rank among the continent’s richest. Forbes currently lists him as the 1,358th richest person globally, maintaining a prominent position among the world’s Black billionaires.
