Patrice Motsepe, Africa’s first Black billionaire, sees net worth fall below $3 billion

Omokolade Ajayi -

Key Points:

  • Patrice Motsepe’s net worth has dropped to $2.9 billion from $3 billion, largely due to a decline in African Rainbow Minerals’ stock value.
  • ARM’s stock price has fallen over 14% in the past month, reducing the market value of Motsepe’s 40% stake below $1 billion.
  • Despite the decline, Motsepe remains one of Africa’s richest individuals and continues to hold a significant position in the continent’s financial landscape.

Patrice Motsepe, Africa’s first Black billionaire and the richest Black individual in Southern Africa, has seen a significant decline in his net worth. After reaching $3.1 billion earlier this year, Motsepe’s fortune has now fallen below the $3 billion mark, largely due to a sustained decrease in his investment portfolio.

According to Forbes, Motsepe’s net worth has decreased by $100 million, from $3 billion to $2.9 billion, compounding a previous decline that saw his net worth fall from $3.1 billion to $3 billion in July. The primary driver of this decline is the sustained drop in the market value of his stake in African Rainbow Minerals (ARM), a prominent South African mining and minerals company.

ARM stock down 14 percent in one month

ARM, which holds strategic positions in various mining projects including iron, coal, copper, gold, platinum, and other precious metals, has seen its stock price plummet over 9 percent since July 29. The shares fell from R215.35 ($11.75) to R195.90 ($10.69), reducing the company’s market capitalization to below $2.7 billion.

As a result of the sustained decline in the company’s shares, the market value of Motsepe’s 40 percent stake in ARM has dropped below $1 billion. ARM’s shares are down over 14 percent in the past month, despite recent efforts by the company to enhance its capacity.

In July, ARM announced its intention to acquire full ownership of the Nkomati nickel mine in Mpumalanga, South Africa, by purchasing the remaining 50 percent stake from Norilsk Nickel Africa, a subsidiary of Russia’s Norilsk Nickel. This move follows ARM’s previous acquisition of a 50 percent stake in the mine nearly nine months ago for R1 million ($0.053 million).

Patrice Motsepe remains among Africa’s richest individuals

Despite the recent setback, Patrice Motsepe remains among Africa’s wealthiest individuals. His financial portfolio extends beyond ARM, including a 12.08 percent indirect stake in Harmony Gold through ARM. Despite the drop in his net worth, Motsepe is ranked 1,148th on Forbes’ global rich list and continues to be a prominent figure in Africa’s financial elite.

The recent drop has also reduced his year-to-date gains from $400 million to $300 million. Nevertheless, Motsepe remains active in exploring new investment opportunities. His investment holding company, African Rainbow Capital (ARC), has been particularly active in the fintech sector.

ARC recently supported Lesaka Technologies’ expansion following its acquisition of Adumo for $85 million. Boasting a market capitalization of nearly $300 million, Lesaka now counts ARC among its investors, further strengthening Motsepe’s presence in the fintech space.