Patrice Motsepe, Africa’s first Black billionaire, has suffered a financial setback, with his net worth dropping by a whopping $100 million. This follows a significant climb early this year, reversing his previous gains.
Motsepe, who became Africa’s first Black billionaire in 2008 through fortunes accumulated in the mining industry, has seen his net worth fall from $2.7 billion on Feb. 1 to $2.6 billion. The sudden fall comes after Motsepe’s wealth increased by $100 million in the first two weeks of 2024.
Despite this setback, the popular businessman, known for his philanthropic efforts, remains one of Africa’s wealthiest people. His recent $500,000 gift in Cote d’Ivoire demonstrates his commitment to charity causes.
The $100 million loss in Motsepe’s fortune is directly related to the drop in the market value of his 40% investment in African Rainbow Minerals (ARM), a leading South African mining corporation with diverse interests in several mining projects. ARM has been having financial issues, most notably a sustained decrease in Platinum Group Metals (PGM) pricing, which has resulted in unsatisfactory financial results.
ARM’s share price fell from R200 ($10.37) on January 1 to R173 ($8.97) at the time of this article. This decline has considerably impacted the market value of Motsepe’s interest in the mining company, which accounts for a sizable chunk of his total wealth.
Despite the latest loss, Patrice Motsepe remains the wealthiest Black individual in Southern Africa and among the richest people on the African continent.
According to Forbes, he is now ranked 1,245th among the world’s richest people and has a significant presence among the world’s Black billionaires. Motsepe’s tenacity in the face of market setbacks demonstrates his continuing influence in business and dedication to philanthropy.