S. Africa's Black Business Elite: Patrice Motsepe: The Black Prince of SA Mining

Japhet Ncube profiles Patrice Motsepe, one of Africa's greatest entrepreneurs.

He is personally worth a cool R4bn. Probably more. And at 42, Patrice Motsepe is probably South Africa's youngest, wealthiest black businessman.

Suave, articulate, and with a dry sense of humour, there is no doubt Motsepe is on the road to becoming the country's richest black mining magnet, joining the billionaire league from virtually nowhere.

Only a few years ago he was a struggling lawyer, and when he entered the business world very few people gave him a second look.

But now the man named after Patrice Lumumba, the first prime minister of the independent Democratic Republic of the Congo - ironically the country his business is looking into - is having a meteoric rise.

He is a shining beacon of the country's black economic empowerment. Since he recently acquired majority shareholding in Sanlam, the once Afrikaans-dominated insurance giant, Motsepe has firmly put his signature on the big business league chart.

Through empowerment company Ubuntu-Botho, Motsepe owns a 12% stake, worth an estimated Rabn, in the life assurance corporation, making him the majority shareholder-and non-executive deputy chairman.

The deal was financed through cash and shares, with Motsepe contributing Rzoom in cash from the Patrice Motsepe Group. Ubuntu-Botho bought 169m Sanlam shares for R1.3bn.

South Africa's business landscape is changing, albeit slowly, with more black entrepreneurs with solid business bases - and not political links - coming on board. Motsepe is one of the most successful of this new generation of black mining magnets.

Unlike former Gauteng premier and Mvelaphanda Holdings boss Tokyo Sexwale, whose roots are firmly - but not entirely -entrenched in the ruling African National Congress (ANC), Motsepe's success, many say, has nothing to do with political connections.

The closest he gets to the corridors of power is through his sisters Bridgette Radebe and Tsepiso Ramaphosa; that is if you ignore the fact that he is actually the prince of a small tribe in Garankuwa, north of Pretoria.

Bridgette is herself an astute entrepreneur, and is married to Enterprises Minister Jeff Radebe. She is the CEO of Mmakau Mining, also a major player on the country's mining landscape.

Tsepiso is married to top, influential businessman Cyril Ramaphosa, a man not long ago tipped to be South Africa's president after Nelson Mandela's retirement.

Ramaphosa owns a majority stake in Johnnic, the country's leading media house, pubishers of among other titles the mass circulation Sunday Times, Business Day, and the premier business magazine, Financial Mail.

Less that 10 years ago, the country's business elite was overwhelmingly white, English-speaking, with a few Afrikaners here and there. Now the tide has changed, and Motsepe is ranked number two amongst the country's 20 most influential businesspeople.

Number One is Johann Rupert, chairman of the R8o.6bn Swiss-based luxury goods and tobacco company, Richement.

Number three in terms of financial muscle is former ANC heavyweight Tokyo Sexwale, chairman of empowerment giant Mvelaphanda Holdings, worth a whopping R6bn.

ENTER MOTSEPE

Named South Africa's Entrepreneur of the Year in 2002, Motsepe holds several crucial positions in top institutions. He is chairman of African Rainbow Minerals Gold (Armgold), an exclusively gold-mining company, and platinum giant Harmony.

Armgold, the nth largest gold producer in the worlsd was listed in May 2002, becoming the first black empowerment mining company on the Johannesburg Stock Exchange (JSE).

It now owns 13 gold mining shafts in South Africa, the majority of which were struggling when Motsepe acquired them.

Through the Motsepe family trusts, the tycoon owns 55.8% of the company, with a market capitalisation of over R8bn. Armgold is the fifth largest gold mining company in South Africa.

Motsepe's year was crowned when CEOs of South Africa's 100 Top Companies voted him Business Leader of the Year 2002.

With good reason. Talk of almost any of South Africa's major companies and business institutions and you are likely to find Motsepe's name at the top of the list. He heads the biggest empowerment mining group, Avmin, and is its major shareholder. He is also chairman of Future Mining (Pty) Ltd.

As the elected president of the Chamber of Commerce and Industry of SA, and Business Unity South Africa, he plays a pivotal role in narrowing the gap between black and white business.

Motsepe is also president of the National African Federated Chamber of Commerce (Nafcoc).

He also sits on the board of several international business organisations, including the World Economic Forum (WEF) where influential business leaders discuss global affairs. He was elected Global Leader of Tomorrow by the WEF.

Motsepe is also the past president and committee member of the white-dominated South African Chamber of Mines.

The next step? He want to go global, but first he wants to conquer Africa's lucrative jungles, particularly in the Great Lakes Region - Rwanda and the DRC - where South African business is setting a solid base.

Copyright International Communications Mar 2004
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