Patrice Motsepe can be regarded as an outstanding entrepreneur, philanthropist and investor. He is best known as the founder and executive chairman of South Africa’s leading mining corporation, African Rainbow Minerals (ARM). He is South Africa’s first black billionaire and has become the nation’s highest-paid executive, with a personal fortune estimated at $2.2 billion in 2017. His story is an inspiring one, and highlights how success can be achieved against all odds.
Early Life
Patrice Motsepe was born into a Tswana royal family on January 28, 1962, in Pretoria, South Africa. He is the eldest son of Augustine Motsepe, a schoolteacher, and his wife Constance. In 1979, he was awarded a bursary to study at the University of Swaziland. After graduating with a law degree from the University of the Western Cape, he completed his articles of clerkship at a law firm in Johannesburg.
Entry Into the Mining Industry
Motsepe decided to pursue a career in the mining industry, as it was the most profitable sector in South Africa. In 1994, he founded African Rainbow Minerals, which was used to acquire gold and chrome mines from multinational companies leaving South Africa. He also ventured into the manufacturing industry and eventually shocked the South African business community by taking over the struggling Shanduka Group, a prominent black-owned company.
Founding ARM
Western Mining Corporation was the first business venture of African Rainbow Minerals (ARM) with the primary aim of extracting and selling minerals such as gold, chrome and platinum. Patrice integrated his legal expertise into the business operations of ARM, which allowed him to consolidate local stakeholder interests and unlock value in the mines.
ARM subsequently became a leader in the South African mining sector, becoming a major employer in the country. The company has since established itself as one of the most active mining companies in the continent, sourcing and acquiring its own resources, discovering new projects and opportunities, and building relationships with partners.
International Expansion
As a result of Patrice’s astute business acumen, ARM has been able to expand beyond South Africa and into other parts of the continent. The company now has operations in 18 African countries including Zambia, Botswana, Sierra Leone, Ghana and Namibia. It has also started working extensively outside the continent in countries like Australia, Canada, China, and the United States.
Strategy for Success
Patrice has had a sharp focus on creating value, and this has been key to his success with ARM. He injected elements of transformation, competitiveness and innovation into his business strategy. This has allowed ARM to adapt to the changing demands of the mining industry and remain competitive in international markets.
He is also responsible for introducing the Black Economic Empowerment (BEE) policies, urging the South African government to include policies to benefit black entrepreneurs. His focus on empowering small businesses and entrepreneurs has allowed emerging talent to access opportunity and support.
Philanthropy
Patrice Motsepe set up the Motsepe Foundation in 1999 in order to provide social and economic support to the less privileged communities in South Africa, primarily women and children. The foundation is involved in initiatives meant to improve the lives of ordinary South Africans such as skills training, enterprise development and HIV/AIDS awareness programmes.
Motsepe’s commitment to uplifting his community and country does not end there. He has also made large donations of resources and funds to universities, hospitals and charities in South Africa and Africa at large. He has also provided scholarships to over 2,000 students from extremely impoverished backgrounds and committed to spending 1 percent of his annual income on uplifting those living in poverty.
Patrice Motsepe’s story is an inspiring one of how success can be achieved in the face of adversity. His business acumen and expertise in the law helped him transform ARM from a small South African gold and chrome extraction company into a continent-wide resources powerhouse. He is also an influential and successful philanthropist in Africa, having used his position to uplift previously deprived communities. It is easy to see why he is a very celebrated entrepreneur and has been dubbed “an icon of entrepreneurship in Africa”.
