South African billionaire Patrice Motsepe on Wednesday committed to donating half his family’s personal wealth to charity.
The 51-year-old, who has been labelled South Africa’s fourth- and Africa’s eighth-richest man by Forbes, said that “at least” 50% of all funds generated by the family assets would be used by the Motsepe Foundation to uplift poor, disadvantaged and marginalised South Africans.
Motsepe, along with his wife, Dr Precious Moloi-Motsepe, became the first non-US couple to join the ‘Giving Pledge’, which was established by fellow billionaire Warren Buffett, Bill Gates and Melinda Gates to encourage wealthy families to give at least half of their wealth to charity over their lifetimes.
The businessman, who is the founder and executive chairperson of black-owned mining group African Rainbow Minerals (ARM), would not disclose the value of the family’s wealth, but stated that the disposal of one-half was “significant”.
He said that, hypothetically, if the family generated R1-billion, the foundation would receive about R500-million.
Forbes indicated that Motsepe’s net worth had reached $2.65-billion by November 2012, but Motsepe declined to comment on the accuracy of this and disputed it as his actual personal wealth.
Motsepe, who was also chairperson of the Motsepe Foundation, assured ARM stakeholders that the life-long gesture would not lead to share overhang or the selling of shares, and that the funds were sourced from the personal income generated from several investments.
The funds would boost the work of the foundation, which was established in 1999, and be distributed through a soon-to-be-established advisory council within the foundation, which would identify the most sustainable initiatives and measure the impact made.
The aim of the foundation, which focused on education and health; uplifting women, youth, workers and the disabled; supporting churches; and developing entrepreneurs and social entrepreneurs, was to ensure beneficiaries became self-sustaining and independent.
His wife, the foundation’s deputy chairperson, would continue her focus on health, women and youth upliftment projects.
The council, which would comprise church, religious, traditional, disabled, women, youth and labour leaders and other respected nongovernmental organisation and community upliftment leaders, would meet twice a year and, along with a technical team, establish the best way to make a difference in people’s lives and monitor the funds’ distribution.
While the majority of the funds donated would be spent on South Africa-based initiatives, the foundation was open to assisting other Africans where needed.
The organisation would also partner with carefully selected respected philanthropic foundations that may be better equipped than the foundation to tackle some initiatives.