The journey of Patrice Motsepe, a prominent investor with holdings spanning financial services, mining, telecommunications, knowledge, and agriculture, provides a lens into Africa’s current economic resurgence, a topic explored during his discussion with Jennifer Zabasajja at a Bloomberg Live event. Motsepe, who embodies the belief that global investment returns can and must happen on the continent, stressed that while many observers look to large multinational corporations based in America or Europe, his excitement is driven by the innovation and creativity of local entrepreneurs, most of whom run small businesses, across major African cities like Lagos, Kinshasa, Cairo, Morocco, South Africa, and Kenya. These developments are crucial for premier investments, job creation, and the improvement of living conditions.
Motsepe emphasizes that successful investment is less about specific industries and more about the specific companies and the people leading them, stressing the critical importance of management and the CEO. His investment philosophy is long-term, focused on a three, five, seven, and ten-year perspective, rather than seeking overnight returns. His companies operate in 58 countries through partnerships, such as with Sanlam and Alliance in Financial Services, and his local bank, Time Bank, serves 12 million clients in South Africa.
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A major component of Motsepe's portfolio is African Rainbow Minerals (ARM), a mining giant with 50,000 employees involved in manganese, iron ore, and pygmies. For ARM, success is dictated by grade, cost of production, cash flow, dividends, and share price performance. ARM also co-manages a gold company, Harmony, which has 50,000 employees and is "doing exceptionally well". However, diversification is key due to obligations to shareholders worldwide. ARM is making huge investments in copper, including in Australia and Papua New Guinea, with a partnership with Newmont possibly requiring $4 to $5 billion down the line. This focus is strategic, as copper is "very important" for the energy transition, the green economy, and climate change. Though gold is a cyclical business, it has done "exceptionally well" recently due to central banks buying disproportionately. Motsepe believes there is a substantial future for mining in South Africa and on the continent, but geographic diversification is necessary, citing ARM’s investment in a copper company in Canada. He affirms that they must consistently deliver competitive returns against "some of the best companies in the world".
Domestically, South Africa holds "enormous potential," boasting world-class academic institutions and some of the continent's best CEOs, including Elon Musk. However, the country faces two major challenges: youth unemployment and crime. Motsepe insists that the private sector is key to success, noting that globally successful economies welcome private sector investment through good legislative, fiscal, and tax policies. A critical factor for recovery is a culture of non-negotiable meritocracy and zero tolerance for corruption. Crime, however, presents a massive barrier to attracting investment; Motsepe recounted a conversation with a CEO in Silicon Valley who asked, "But is it safe?" before considering opening a business in South Africa, reflecting the "bad name and the bad reputation" the country has built over many years. He emphasized that while developed economies like America and Europe can absorb crime, South Africa as a developing economy cannot. Perception, Motsepe argues, has an "almost determinative influence" on people's views.
Beyond his financial empire, Patrice Motsepe is the President of the Confederation of African Football (CAF), a responsibility he took on when the organization was $140 million (American dollars) in debt. He stated that taking the job was "more than unintelligent," but was driven by his love for football and, more importantly, a commitment to the continent’s youth. He views football as the most powerful force for engaging young people in education, skills, technology, and building a bright future. He introduced private sector principles to CAF, including efficiency, productivity, and competitiveness, and implemented a culture of zero tolerance for corruption, hoping this culture would "transcend into governments in Africa and the bureaucracies". CAF is now profitable, has more sponsors, and is becoming a global brand. The recent football competition in Côte d’Ivoire benefited the economy by $1.5 billion. Motsepe is now focused on making $1 billion available for football development across the 54 countries in Africa over the next eight years.
When asked by Jennifer Zabasajja about potentially running for President of South Africa or FIFA President, Motsepe stated that he does not need to enter politics to fulfill his family’s "enormous obligation" to the people of the country and the continent. He is committed to uniting South Africans and working with all political parties. As for FIFA, he said, "FIFA doesn't excite me," explaining that President Gianni Infantino is doing excellent work and FIFA doesn't need him. Africa, however, excited him because CAF was bankrupt and ridden with corruption, providing a significant opportunity for change and growth. He remains optimistic that Africa's future is bright and the continent will succeed.
