COVER STORY
Minerals , there ’ s more to the man than mining . Earning his LLB from Wits in 1988 , Motsepe started work at one of the largest law firms in the country , Bowman Gilfillan . In 1991 , as visiting attorney to a law firm in Virginia , USA , he was exposed to several mining organisations , sparking an long-idling interest in the business . As a child , Motsepe would have daily exposure to clients of his father ’ s shop , most of them miners . He decided to specialise in mining and business law .
Future Mining was built on the principle that successful mines aren ’ t always the largest ones , but rather the best run . This , coupled with a dash of luck , eventually lead to what became known as African Rainbow Minerals .
In 1997 , with the price of gold plummeting , AngloGold was looking to offload some of its low-performing shafts . Motsepe , always one to seize a good opportunity , jumped at the chance to buy them . There was only one problem . At $ 8.2m , the price tag proved to be too high for a black South African unable to get a loan from any banks . CEO of AngloGold at the time , Bobby Godsell , had played witness to Motsepe ’ s business smarts and passion for the industry , and he took note . It was agreed that Motsepe , through African Rainbow Minerals , would be allowed to repay the price through the company ’ s profits .
Within a few years , Motsepe delivered on the promise . After three years , he had managed to turn the struggling mines around , delivering a profit after only 12 months . Armed with a healthy track record , the businessman entered into a partnership with Anglo Platinum , delivering similarly stellar results . Fast forward to present time , and Motsepe is at the head of one of the largest mining companies on the continent , with revenues exceeding $ 2b and employing more than 10 000 workers .
Putting it to good use
In 2004 , Motsepe founded Ubunto-Botho Investments . The aim was to build black controlled capital by being Sanlam ’ s empowerment partner . The company ’ s vision was two-fold . The first phase consisted of accumulating capital , while the second involves partially investing said capital in African Rainbow Capital .
ARC listed on the JSE in September of 2017 . ARC and , by definition , Ubuntu-Botho Investments , consists of a 20 % stake held by broad based BEE groups , including women ’ s groups , unions , and youth trusts . The remainder is held by the Sanlam Ubuntu-Botho Community Development Trust and the Motsepe Family Trust .
The initial goal is far from forgotten . More than 400 000 people have directly benefitted from annual disbursement from funds , while half the profits realised by the company will be redistributed to the community through several foundations . ARC Investments holds a portfolio valued at R4.5b , with a diverse range of investments . The majority of investments , by value , fall within the IT and telecommunications sector , with Financial Services and Agriculture and Food Production rounding out the top three .
In March of this year , ARC partnered with Barloworld and Atterbury in the redevelopment of the Barlow Park Campus , in Sandton . Each party holds one-third of the landmark site , with investment value expected to climb to well over R3b as the full development is rolled out . Upon completion , it is set to be a 130 000sqm mixed use precinct .
The site is in the process of being rezoned , a process that could take up to a year . Subject to this , the site development will include approximately 55 000sqm of offices , nearly 800 residential units , a community retail centre coming in at around 10 000sqm , along with a hotel and gym . Once zoning approval is obtained , the development is expected to follow a 6 to 8 year development timeline , being phased out according to market demand .
With investments in all the key sectors of the economy , Motsepe seems to embody what it means to have one ’ s finger on the pulse of innovation . In a rapidly evolving world , and an uncertain local landscape , knowing when to pounce is what sets the masters apart from the rest .
SOURCES Forbes , Bloomberg , Startup Tips , African Rainbow Minerals , African Rainbow Capital , PayProp , Tyme , Val de Vie , ooba ,
NOTABLE INVESTMENTS ooba
Ooba , formerly MortgageSA , pioneered mortgage origination in South Africa and now offers a range of solutions to homebuyers . As South Africa ’ s leading home loan originator , they can help you to not only finance your home with ease , but also see that you ’ re well insured . The homebuyer solutions comprise of two core offerings : oobabond and oobainsure .
Rain
Rain is intended to be a “ full service ” Mobile Network Operator , focusing on data as a primary offering . The major assets constitute spectrum licenses and Rain has made significant progress in building a dedicated national LTE Advanced network in the valuable under-utilised frequencies .
Majik Holdings
Squarestone Growth LLP is a high yield regional commercial property portfolio managed by Squarestone , an experienced asset manager with offices in London and Edinburgh . The core investment strategy is to acquire well located modern properties at a discount to replacement build cost with demonstrable potential to enhance rental and capital growth through active asset management .
Val de Vie
Voted Safest Estate in Africa at the International Property Awards , the Val de Vie development of 917 hectares offers buyers a range of small farms , large stands , plot and plan options and luxury apartments .
ARC Real Estate
A joint venture between ARC and Signature Investment Holdings , ARC RE has a specific investment mandate relating to empowerment-linked property transactions . As a well-capitalised and majority Black-owned property fund , ARC RE ’ s objective is to partner with leading South African corporates in leveraging the opportunities created through the various Broad-Based Black Economic Codes of Good Practice (“ BEE Codes ”), in respect of property-linked transactions and exposures .
12 MAY / JUNE 2018 SA Real Estate Investor Magazine