Key Points:
- Patrice Motsepe’s fortune falls below $3 billion after a $200 million decline linked to mining company ARM.
- ARM’s share price drops over 5%, impacting Motsepe’s stake and pushing market cap below $2.7 billion.
- Motsepe expands his portfolio with ARC’s investment in fintech firm Lesaka, signaling a strategic shift.
South African billionaire Patrice Motsepe has seen his net worth decline by $200 million, bringing his fortune below the $3 billion mark. This follows a record performance in May that pushed his wealth above $3 billion, according to Forbes.
ARM shares down 5%
Motsepe’s fortune peaked above $3 billion in May, but a $200 million decline linked to his stake in African Rainbow Minerals (ARM) has pushed his net worth to $2.8 billion. ARM, a prominent South African mining and minerals company, holds strategic positions in various mining projects covering iron, coal, copper, gold, platinum, and other precious metals.
The company’s share price has fallen more than 5 percent since May 20, dropping from R238.1 ($12.65) to R225.84 ($12). This decline pushed ARM’s market capitalization below $2.7 billion, causing the market value of Motsepe’s 45.9 percent stake to fall below $1.3 billion.
Mirroring a broader trend among Africa’s wealthiest individuals, Motsepe is strategically diversifying beyond ARM. He is building resilience and seeking future opportunities by expanding his investment portfolio.
Diversification beyond mining
Motsepe, who became Africa’s first Black billionaire in 2008 through his mining ventures, is establishing a new foundation for his wealth. His investment holding company, African Rainbow Capital (ARC), recently backed Lesaka Technologies’ expansion in the fintech industry.
NASDAQ-listed Lesaka, with a market cap of nearly $290 million, struck a deal to acquire payments technology firm Adumo for R1.59 billion ($85 million) in a cash-and-share deal. This acquisition brings ARC on board as an investor in Lesaka.
Patrice Motsepe expands fintech influence
ARC’s investment in Lesaka not only diversifies its portfolio but also expands Patrice Motsepe’s influence in the fast-growing fintech and digital banking space.
Through ARC Financial Services Holding, a Black-owned and -controlled company under Ubuntu-Botho Investments (UBI, founded by Motsepe), he holds a significant stake in TymeBank, South Africa’s leading digital bank.
