Table of Contents
Key Point
- Africa’s first billionaire, Patrice Motsepe, has seen his net worth drop by $100 million in the past 20 days.
- The decline is mainly attributed to a drop in the value of Motsepe’s 40% stake in African Rainbow Minerals.
- Despite the setback, Motsepe’s broader investments, including fintech, help cushion the blow.
Africa’s first Black billionaire, Patrice Motsepe, has seen his net worth decline significantly by $100 million over the past 20 days, following a recent revaluation of his broad portfolio, which spans mining, financial technology, and insurance.
According to Forbes, Motsepe’s net worth decreased from $3.1 billion on July 8 to $3 billion at the time of this report. Motsepe, who achieved billionaire status in 2008 through his mining ventures, had seen his wealth surge to $3.1 billion in early July before the recent downturn.
ARM stake sinks, year-to-date gains dip
The $100-million decline in Motsepe’s fortune follows a notable increase of $100 million between July 1 to 8. This reduction is attributed to the decrease in the market value of his 40-percent stake in African Rainbow Minerals (ARM), a leading South African mining group. The recent dip has also reduced his year-to-date gains from $500 million to $400 million.
ARM shares have fallen from R234.45 ($12.83) on July 8 to R219.05 ($11.98) at the time of writing. This decline has pushed ARM’s market capitalization below $2.7 billion, causing the market value of Motsepe’s 40 percent stake to fall below $1.1 billion.
Patrice Motsepe’s diversified wealth
Despite recent weakness in ARM’s share price, RMB Morgan Stanley, a unit of U.S. investment bank Morgan Stanley, remains bullish on South African equities, citing ARM as a potential outperformer. However, the market’s reaction to recent events indicates investor caution.
Patrice Motsepe, ARM’s chairman, remains one of Africa’s wealthiest individuals, thanks to a diversified portfolio that extends beyond mining. He holds a 12.08 percent indirect stake in Harmony Gold through ARM. Motsepe is the richest Black person in Southern Africa and one of the world’s top billionaires, with a net worth placing him at 1,124th on the Forbes global rich list.
His investment holding company, African Rainbow Capital (ARC), has been active in the fintech space. It recently backed Lesaka Technologies’ expansion after the payments firm acquired Adumo for $85 million. With a market capitalization approaching $300 million, NASDAQ-listed Lesaka now counts ARC among its investors, strengthening Motsepe’s fintech footprint.
