Tycoon Patrice Motsepe’s investment firm switches to banks, shuns mining

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Of all the businesses, we will probably put more money into financial services into the future, and will probably take a little bit off the table in mining, and property' ARC Co-Chief Executive Officer Johan van Zyl. finance PatriceMotsepe

African Rainbow Capital, founded by South African billionaire Patrice Motsepe, is switching to investing in digital banks and financial startups, while shunning mining stocks, saying the boom in commodity prices maybe overdone. The firm, which manages assets valued at R14 billion , sold its stake in Afrimat Ltd., a supplier of construction materials, industrial minerals and bulk commodities such as iron ore.

“Of all the businesses, we will probably put more money into financial services into the future, and will probably take a little bit off the table in mining, and property.” The Johannesburg Stock Exchange’s index of industrial metals and mining stocks has jumped 10-fold in the six years to 2021. That compares with a 45% advance in the banking index, prompting ARC to cut its mining investments and plow the gains into banks.

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