Mamelodi Sundowns owner and CAF president Dr Patrice Motsepe loses R1 billion in less than a year.
Dr Patrice Motsepe, the owner of Mamelodi Sundowns and the president of the Confederation of African Football (CAF), has seen his wealth decline by approximately $1 billion(R19 billion) in 2023, according to the latest Forbes billionaires list.
Motsepe, who is Africa’s first black billionaire, now has a net worth of $51.8 billion, down from $52.8 billion in 2022.
Reasons for the Decline
The main reason for Motsepe’s wealth decline is the drop in the share price of African Rainbow Minerals (ARM), the mining company he founded and chairs.
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ARM’s share price fell by 17% in 2023, as the company faced lower commodity prices, higher costs, and operational challenges.
ARM’s profits also declined by 25% in the year ending June 2023.
Another factor that contributed to Motsepe’s wealth decline is the depreciation of the South African rand against the US dollar.
The rand weakened by 9% in 2023, reducing Motsepe’s wealth in dollar terms.
The rand was affected by the political and economic uncertainty in South Africa, as well as the impact of the COVID-19 pandemic.
Outlook for Motsepe
Despite the decline in his wealth, Motsepe remains one of the richest and most influential people in Africa.
He is still the eighth richest person in Africa and the third richest person in South Africa, after Johann Rupert and Nicky Oppenheimer.
He is also the first African to lead CAF, the governing body of African football, since he was elected in March 2021.
Motsepe has also diversified his business interests beyond mining.
He owns a stake in Sanlam, a financial services group, and TymeBank, a digital bank.
He also has investments in renewable energy, health care, education, and sports.
He is also a philanthropist who has pledged to donate some of his wealth to charitable causes.