Patrice Motsepe’s Life as South Africa’s Billionaire

Patrice Motsepe is a South African business giant with an extensive network of businesses across the mining, financial, and sports industries, making him one of the most influential businessmen in the country.

Motsepe credits much of his business success to what he learned while working in his parents’ grocery store on the outskirts of Pretoria. He regularly interacted with mine workers who visited the store.

He left for boarding school in the Eastern Cape but returned to Gauteng to study law at the University of the Witwatersrand. After graduating, he joined the Bowman Gilfillan law firm in 1988 and became a partner in 1994, specializing in mining and business law.

Motsepe’s rapid ascent in mining led to the 2002 public offering of African Rainbow Minerals (ARM), a company with diverse mining interests in platinum, coal, iron, copper, and gold.

According to Billionaires Africa, Motsepe is anticipated to pocket a final dividend of R1.088 billion ($56.5 million) from his 40.37% ownership in ARM. This payout, scheduled for 9 October 2023, represents a notable decrease from the R1.78 billion ($103 million) in dividends he received last year when ARM reported a 7% decline in profit.

Despite this decline, according to Forbes’ real-time billionaires list, Motsepe is worth an estimated $2.3 billion (R43.8 billion) and is currently Africa’s ninth richest person.

The companies Matsepe owns

Following the listing of ARM, Motsepe’s investment vehicle, Ubuntu-Botho Investments, acquired a significant stake in Sanlam. Ubuntu-Botha is Sanlam’s empowerment partner.

This partnership has spanned two decades. As of 2022, Ubuntho-Botho owned 17.8% of Sanlam—their largest shareholder—and Motsepe is currently the deputy chair of Sanlam.

Motsepe founded African Rainbow Capital (ARC) in 2015 after succeeding in the mining sector. A surge in ARC’s share price in 2008 propelled Motsepe to the Forbes billionaire list.

Through ARC Investments, Motsepe has a shareholding in many of South Africa’s top financial, insurance, banking, telecom, agricultural, and IT companies.

African Rainbow Capital (ARC) saw a significant increase in the company’s intrinsic value in the 2023 financial year and completed acquisitions of almost R2 billion. This included investing R81 million in mobile communications company Rain and a total of R664 million in TymeBank and Tyme Global through Tyme SA Holdings and Tyme Group Africa.

Although Motsepe’s love for soccer is well-known—being the owner of nine-time premiership winners Mamelodi Sundowns—he also acquired a 37% stake in the Pretoria-based Blue Bulls Company, making him a co-owner alongside Remgro and the Blue Bulls Rugby Union.

Motsepe is also known for his philanthropy, starting The Motsepe Foundation in 1999 as a charitable organization to alleviate poverty and improve the living standards of the poor, unemployed, and marginalized.

A recent example of this foundation’s contributions included a donation of R30 million to 26 student representative councils (SRCs), which was allocated towards alleviating student concerns surrounding registration, fees, and historical debt at the beginning of the year.

Below is a summary of the companies he owns—African Rainbow Minerals, African Rainbow Capital, Ubuntu-Botho Investments, African Rainbow Energy and Power—and his sports franchises, as outlined by Daily Investor