Patrice Motsepe and the (judicious, obligatory) redistribution of wealth

It counts ministers and mining moguls in its ranks, and has a good chance of welcoming at least one president to the dinner table in the next few years. The Motsepe family is also in the habit of giving its money away

It is not every day that 50 kings and chiefs from across Southern Africa gather in one room at the invitation of a commoner.

But Patrice Motsepe is no ordinary man. Besides being one of the wealthiest people in the country, with Forbes putting his worth at more than R20-billion, the mining magnate belongs to the most powerful family in South Africa.

Forget the Zumas; it is the Motsepe dynasty that seems destined to call the shots for many years to come.

mini_story_image_hleft1

One of Motsepe's brothers-in-law is Deputy President Cyril Ramaphosa, a man who could well be elected South Africa's president when Jacob Zuma completes his second term in 2019. Another brother-in-law, Jeff Radebe, is minister in the Presidency and the country's longest-serving cabinet member, having had a seat at the top table in every administration since Nelson Mandela became head of state in 1994.

Although the battle for the presidency seems to be a two-horse race between Ramaphosa and AU Commission chairwoman Nkosazana Dlamini-Zuma, there are those in the ANC who see Radebe as one of the dark horses to be watched.

Motsepe's elder sister Bridgette Radebe, who is married to the minister, is a mining magnate in her own right, having founded Mmakau Mining.

The extent of her power and influence was demonstrated in dramatic fashion recently when she had a public falling out with the then mineral resources minister, Ngoako Ramatlhodi.

mini_story_image_hright2

The minister lost the fight and was demoted by Zuma to the public service and administration portfolio.

However, it is not just Motsepe's close proximity to political power that persuaded so many monarchs to make their way to the Sandton Convention Centre to meet him on Tuesday.

They were there to witness the tycoon's African Rainbow Minerals donate millions of rands to rural upliftment trusts set up to help people living under traditional leaders.

The R6.5-million project, which will also see AgriSA share its expertise with these communities, is but one of Motsepe's philanthropic initiatives.

The businessman's Motsepe Foundation is also spending R50-million on the construction of clinics, schools and community halls in rural areas. It plans to have spent R210-million by the end of 2016 on bursaries for college and university students.

At Tuesday's gathering, Motsepe also announced that R117-million will be used by his foundation to promote netball, soccer and choral music at school level.

block_quotes_start We have no future as a family if poor South Africans, marginalised South Africans, have no future block_quotes_end

In 2013, Motsepe donated half of his family's wealth to the foundation.

His actions, he told the Sunday Times this week, were motivated by the knowledge that others had helped him be who he is today.

"We as a family did not become what we are because we are smarter or brighter or more intelligent than any other family. It's totally incorrect. We became what we are because many South Africans over many years supported us, and black and white South Africans encouraged us, believed in us.

"It's a humble way to say thank you to them ... We have no future as a family if poor South Africans, and marginalised South Africans, and unemployed South Africans have no future. We have to be seen as a family not so much in terms of what we say, but more in terms of what we do. That we recognise it's a huge, huge obligation on us."

story_article_left1

He said South Africa must disabuse itself of the notion that only a few politically connected individuals benefited from economic growth.

"That sort of environment has given rise to uprisings all over Africa. It gives rise to civil instability, violence. At the heart of this is bringing blacks into the centre of the economy and ensuring that blacks are meaningful, sustainable - this is critical, sustainable - participants in the growth and development of the economy. It's also to make sure that we create a future for all of us."

Part of this, he said, involved growing the black middle class by encouraging more sustainable black business ownership.

"We must recognise that we've made some mistakes. Some of the mistakes we made were at the heart of empowerment," which did not require attributes such as entrepreneurship, global competitiveness and sustainability.

"We did not put the objective that black-owned businesses are as competitive as businesses you find all over the world.

"When I go to our shareholders in London, in New York, Europe, Singapore, their starting point is: 'Why must I buy shares of the companies that you've founded if there are other companies that can make more money for us, [whose] risks are lower, that are more competitive and more sustainable?'

mini_story_image_hright3

"That is absolutely the most important thing - that we have to create black-owned businesses and partnerships between black and white South Africans, but those partnerships must be globally competitive. They must be profitable. They've got to train and employ the best skills and expertise."

Many South Africans may find it hard to envision a prosperous future, with GDP figures for the third quarter of 2015, released this week, showing that the country had only narrowly avoided going into recession.

The mining industry, where Motsepe made his fortune, is in the doldrums, having shed many jobs; it shows little sign of recovery. Motsepe said the fact that the mining industry was struggling required South Africa to be innovative.

"We've got to look at South Africa as a country and ask ourselves: 'What do we make, what do we sell, that is better, cheaper, more competitive than other countries you know?'

block_quotes_start It used to be black and white . . . now it's those who've got the money and those who don't have the money block_quotes_end

"For example, do we make Mercedes-Benz, BMW, Kia, Toyota, even Tata? This is what lies at the heart of competitiveness. What does the country make, produce, sell, that others want?

"All countries look at that. America says: 'We've got Apple ... technology, nobody can touch us. We've got Microsoft.' China says: 'We were part of this commodities boom, we're now changing from a commodities economy to a services, consumer-led economy.' Germany says: 'We will continue to make the best BMW, Mercedes and let the consumer decide all over the world and we will continue to make the best equipment in the world.'

story_article_left2

"You've got game lodges, excellent weather, you can have hotels, you can build a tourism industry. Look at Singapore. Singapore had nothing ... Every country focuses on its competitive advantage.

"But having said that, we need to continue to focus on global competitiveness and private-sector, both domestic and foreign, investment and creation of jobs, provision of skills and expertise in areas of the economy that are growing. There are too many black kids who've been to university who cannot find a job because we didn't provide them with the appropriate skills and expertise in sectors of the economy that are growing."

Asked about the #FeesMustFall campaign, he said: "The biggest investment you can make in your people is education. The most successful countries in the world have built their economic, social success as well as political stability on education. Now what happens? It used to be black and white . . . now it's those who've got the money and those who don't have the money. So Patrice Motsepe's sons go to the best universities, the best schools . . . the relatives of my sons go to township schools."

kortjaasb@timesmedia.co.za, skitis@sundaytimes.co.za