The Confederation of African Football (CAF) President Patrice Motsepe is the first black African to appear on the Forbes billionaires list. As of 2022, he is the ninth richest person in Africa, with a net worth of $3.1 billion. A lot of people are interested in finding out how the South African made his money. In this blog post, we provide you with all the details about Patrice Motsepe’s wealth.
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Patrice Motsepe’s Background
Patrice Motsepe was born on 28 January 1962 in Soweto, South Africa. He grew up during the apartheid regime. Despite his father being politically punished for his opinions, he ran a successful liquor store business.
Motsepe worked in it and was exposed to miners who came to the store as well as acquired business knowledge. In an interview, Motsepe recalled his experiences working in the store.
“One of the things I learnt is that the customer is always right. I used to recommend different products to customers but I realised that you have to listen to their desires.” Motsepe said.
As for his schooling, he attended a catholic school in Eastern Cape province and later graduated from the University of Swaziland with a law degree. In 1998, he joined Bowman Gilfillan law firm and quickly ascended to the position of a partner by 1993. He focused on mining and business law.
“I always stood behind the counter at my father’s store when I was at home. It was a long day. I once told my dad that we hardly ever go on vacation, all we do is work. This made me look for careers. I thought of being a doctor but I didn’t like the sight of blood so that’s how I ended up in law.” Motsepe said.
In the post-apartheid era, Motsepe took a big leap. He left the law firm and joined the mining industry.
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Patrice Motsepe and Mining
Patrice Motsepe believed that he had all it takes to turn the less-developed mining shafts into profitable entities. In 1994, he started his mining company, Future Mining, to achieve this. Three years later, Motsepe founded Africa Rainbow Minerals (ARM), and the company went public in 2000 when it was listed on the Johannesburg Stock Exchange.
In 2003, ARM merged with Harmony Gold and took over Angovaal Mining. Motsepe is the executive chairman of the company, and the business has since diversified its portfolio in the mining business. In addition to gold, it was dealing with coal.
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How Black Economic Empowerment (Bee) Benefited Patrice Motsepe
In 2003, the South African government ushered in the Black Economic Empowerment (BEE) to help black South Africans develop their financial standing. However, critics argue that it was meant to further the interests of well-connected individuals.
Speaking to a local South African website, News 24 Motsepe expressed support for BEE: “At the heart of BEE was the need to get blacks to be stakeholders in the economy.”
“Broad-based BEE is important because we have to bring in new people so you don’t have the same faces.”
As a result of the laws, Motsepe was able to strike deals with some companies that parachuted him to the top of the mining business.
In 2004, Motsepe, through his Ubuntu-Botho Investment (UBI) entity, partnered with Sanlam and bought a majority stake in the company. Through this, both parties have contributed to the economic development of the communities in South Africa.
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Patrice Motsepe’s Investments
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Motsepe launched another venture in 2015, the African Rainbow Capital (ARC), which buys shareholding of other companies. It’s a subsidiary of UBI, which is closely linked to Sanlam. Some of their investments include Rain & TymeBank.
ARC has enabled Patrice Motsepe to buy one of the best South African football clubs, Mamelodi Sundowns. In 2003, he purchased a 51% stake to become the club’s owner. He’s also invested in the Blue Bulls Company.
Patrice Motsepe is also known for his philanthropy. He launched his foundation, Patrice Motsepe Foundation, in 1999.
In 2021, he was elected unopposed as the president of the Confederation of African Football (CAF).
This is how Patrice Motsepe made his money, and it’s why he’s a mining magnate.
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