Patrice Motsepe
Patrice Motsepe.jpg
Patrice Motsepe in 2009
Born
Patrice Tlhopane Motsepe

(1962-01-28) 28 January 1962 (age 58)
Ga-Rankuwa, Pretoria, South Africa
NationalitySouth African
Alma materUniversity of Swaziland
University of the Witwatersrand
OccupationBusinessman
Known forFounder, African Rainbow Minerals
Net worthUS$ 2.1 Billion (August 2020)[1]
TitleExecutive Chairman of African Rainbow Minerals
Spouse(s)
(m. 1989)
Children3
RelativesTshepo Motsepe (sister)
Bridgette Radebe (sister)
Cyril Ramaphosa (brother-in-law)
Jeff Radebe (brother-in-law)

Patrice Tlhopane Motsepe (born 28 January 1962) is a South African mining billionaire businessman of Tswana descent. He is the founder and executive chairman of African Rainbow Minerals, which has interests in gold, ferrous metals, base metals, and platinum. He sits on several company boards, including being the non-executive chairman of Harmony Gold, the world's 12th largest gold mining company, and the deputy chairman of Sanlam. In 2012, Motsepe was named South Africa's richest man, topping the Sunday Times' annual Rich List with an estimated fortune of R20.07 billion ($1 billion).[2]

In 2003, he became the owner of football club Mamelodi Sundowns.[3]

In 2013, he joined The Giving Pledge, committing to give half of his wealth to charitable causes.[4]

Early life and education

Patrice was born to Kgosi Augustine Motsepe, a chief of the Mmakau branch of the Tswana people, who had previously been a schoolteacher and who was later a small businessman as the owner of a Spaza shop which was popular with black mine workers. It was from this shop that Motsepe learned basic business principles from his father, as well as first-hand exposure to mining.

He earned a Bachelor of Arts degree at the University of Swaziland and a law degree from the University of the Witwatersrand.[5] He specialised in mining and business law.

Career

In 1994, he became the first black partner in the law firm Bowman Gilfillan—the same year that Nelson Mandela was elected as the country's first black president. While the new government began promoting black empowerment and entrepreneurship; Motsepe founded Future Mining, which provided contract mining services that included the cleaning of gold dust from inside mine shafts for the Vaal Reefs Gold mine, and implemented a system of worker remuneration that combined a low base salary with a profit-sharing bonus.[6]

Mining

In 1997, with gold prices at a low, he purchased marginal gold mines from AngloGold under favourable finance terms. AngloGold sold Motsepe six gold mine shafts for $7,7million allowing him to repay the debt out of the future earnings of the company now known as African Rainbow Minerals.[7]

This was repeated in a string of deals and Motsepe set up a firm to begin buying the operating mines that would become the source of his wealth. In 1999 he teamed up with two of his associates to form Greene and Partners Investments.

The Black Economic Empowerment (BEE) laws introduced after the 1994 elections have been instrumental in cementing Motsepe's position in the mining industry in South Africa. A business must have a minimum of 26% black ownership to be considered for a mining license.[8]

Since 2004, he has been a non-executive director of Absa Group and Sanlam.[9]

In 2002 when it was listed on the JSE Security Exchange, African Rainbow Minerals joined with Harmony Gold Mining Ltd. and the company's name changed to ARMgold. Motsepe is also the founder of African Rainbow Minerals Platinum (Proprietary) Limited and ARM Consortium Limited, which later equally split ownership with Anglo American Platinum Corp Ltd. From 2005, Motsepe was Chairman of Teal Exploration and Mining Incorporated. Motsepe is also chairman of Ubuntu-Botho Investments, Non-Executive chairman of Harmony Gold Mining Co Ltd. and deputy Chairman of Sanlam Ltd. Motsepe has been president of South Africa's Chamber of Commerce and Industry.[10]

Financial

In 2003, Motsepe created Ubuntu-Botho Investments (UBI) (and in 2019 he owned 55% of it). In 2004 UBI entered into a BEE deal with insurance and financial services company Sanlam.[11] That deal ended in 2014 when the debt had been paid and UBI acquired 13.5% of Sanlam but UBI has a 18.1% voting stake in Sanlam as its BEE partner. UBI then started African Rainbow Capital (ARC), a wholly owned subsidiary of UBI. ARC's joint chief executive is Johan van Zyl, former executive of Sanlam. ARC has holdings in more than 40 companies, including TymeBank, industrial group Afrimat, agricultural company BKB, telecommunications company Rain, luxury property estate Val de Vie, and a minority stake in Alexander Forbes, the pension fund administrator.[11]

Sport

Motsepe is the owner of Mamelodi Sundowns F.C. a Premier league soccer club. In November 2019, Motsepe bought a 37% stake in the Blue Bulls Co. The other major shareholders are Remgro (37%) and Blue Bulls Rugby Union (26%).[12]

Advocacy

He is currently the interim chairman of the Black Business Council and is a founding member and former president of one of South Africa's most influential business advocacy and lobby group Business Unity SA (BUSA).[13]

Recognition

Patrice Motsepe at World Economic Forum on Africa, June 2015, Cape Town

Motsepe won South Africa's Best Entrepreneur Award in 2002.[9] In 2004, he was voted 39th among the South African Broadcasting Corporation's Great South Africans. In 2008, he was reported as the 503rd-richest person in the world, according to the Forbes 2019 list of The World's Billionaires, then ranked as the 962nd-wealthiest person in the world, and the third-wealthiest South African for 2019.[14] In 2020, Motsepe was ranked as the 1,307th-wealthiest person in the world by Forbes, with a reported fortune of US$2.1 billion.[15]

Personal life

Motsepe is married to Dr. Precious Moloi, a physician and fashion entrepreneur. They have three children.[1] He is the brother of Tshepo Motsepe and Bridgette Radebe, and the brother-in-law of both President Cyril Ramaphosa and Minister Jeff Radebe.

References

  1. ^ a b "Forbes profile: Patrice Motsepe". Forbes. Retrieved 14 August 2020.
  2. ^ Billionaire Sir Patrice Motsepe Remains South Africa' Richest Man, As Mining Sector Influence Rich List, Ventures Africa, 2012
  3. ^ "Patrice Motsepe's lack of success at Mamelodi Sundowns". Kick Off. 20 August 2013. Retrieved 11 August 2018.
  4. ^ "Patrice Motsepe: South African tycoon to donate millions". BBC News. 30 January 2013. Retrieved 30 January 2013.
  5. ^ Patrice Motsepe | Who's Who SA Archived 16 September 2013 at the Wayback Machine. Whoswho.co.za. Retrieved on 2016-12-29.
  6. ^ "Stocks". Bloomberg.com. Retrieved 8 January 2017.
  7. ^ "Patrice Motsepe: a rare success story". Moneyweb. 24 July 2013. Retrieved 8 January 2017.
  8. ^ Jacopo Prisco, for. "7 things you didn't know about Patrice Motsepe". CNN. Retrieved 8 January 2017.
  9. ^ a b Mr Patrice MOTSEPE Archived 30 June 2007 at the Wayback Machine whoswhosa
  10. ^ "AFRICAN RAINBOW MINERALS LTD". Bloomberg Businessweek. Retrieved 24 March 2011.
  11. ^ a b Crotty, Ann (24 January 2019). "Decoding Sanlam's cosy deal with Patrice Motsepe". BusinessLIVE. Retrieved 2 December 2019.subscription required
  12. ^ Njini, Felix (22 November 2019). "Billionaire adds SA's top rugby team to his empire". Bloomberg. Moneyweb. Retrieved 2 December 2019.
  13. ^ "Patrice Motsepe, Founder and Executive Chairman, African Rainbow Minerals Ltd., South Africa". Thomas White International. Retrieved 8 January 2017.
  14. ^ "Meet the ultra-rich South Africans you’ve probably never heard of", Business Tech, 18 May 2018. Accessed 22 March 2019.
  15. ^ "The World's Real-Time Billionaires". Forbes. 2020. Retrieved 14 August 2020.

External links