Patrice Motsepe, Africa’s first black billionaire, has lost nearly one billion dollars from his fortune this year after a sharp sell-off in South African mining stocks eroded the value of his holdings in Harmony Gold and African Rainbow Minerals (ARM).
- +Africa’s first black billionaire loses nearly $1bn as mining stocks tumble
The South African mining magnate and president of the Confederation of African Football (CAF) has seen his estimated net worth fall from $4.3 billion at the beginning of March to $3.4 billion as of July 30, according to Forbes, wiping $900 million off his wealth in five months.
The South African mining magnate and president of the Confederation of African Football (CAF) has seen his estimated net worth fall from $4.3 billion at the beginning of March to $3.4 billion as of July 30, according to Forbes, wiping $900 million off his wealth in five months.
The decline has also reshuffled the rich list in Africa’s largest economy. After rising to become the country’s third-richest person earlier this year, Motsepe now ranks fifth, behind Michiel Le Roux and Koos Bekker.
Most of Motsepe’s wealth is tied to his mining investments. He owns an indirect 11.8 percent stake in Harmony Gold, South Africa’s largest gold producer, through a holding dating back to Harmony’s merger with Avmin in 2003. He is also the controlling shareholder of ARM, one of the country’s largest diversified mining companies.
Both stocks have come under heavy pressure over the past six months despite strong commodity markets.
Harmony Gold shares have fallen more than 29 percent on the Johannesburg Stock Exchange over the period, while ARM has declined nearly 35 percent, wiping billions of rand from their combined market value and dragging down Motsepe’s fortune.
The decline comes even as both companies continue to invest aggressively to expand production and strengthen long-term earnings.
Last week, ARM approved a R15.2 billion ($926 million) expansion of its Bokoni platinum mine after completing a definitive feasibility study, while also authorising the restart of the Nkomati nickel mine as part of its long-term growth strategy.
Harmony Gold has also moved to reinforce its balance sheet, securing a multicurrency financing package worth more than R20 billion ($1.19 billion) to refinance debt and fund the expansion of its Australian copper business.
The package includes $500 million, A$500 million ($347 million) and R7 billion ($418 million) in loan facilities. The company said the refinancing would lower borrowing costs, improve liquidity, replace syndicated loans raised in 2022, repay the bridge facility used to acquire MAC Copper and provide additional funding for corporate purposes.
Motsepe became the first black African billionaire on the Forbes list in 2008 after building African Rainbow Minerals into one of South Africa’s largest mining groups. Beyond mining, he has investments in financial services through Sanlam and African Rainbow Capital and owns Mamelodi Sundowns Football Club.
