African Rainbow Capital (ARC), founded and chaired by South African billionaire Patrice Motsepe, says a criminal syndicate is fraudulently using its name to scam members of the public.
ARC said the criminal syndicate is fraudulently using the ARC name, branding, and the identities of purported ARC employees to deceive company members.
The syndicate mainly operates via social media platforms, especially WhatsApp groups, where fraudsters use fake employee names, profile photos, and ARC branding to create a sense of legitimacy.
Individuals who join these groups are then encouraged to make regular deposits of money and are falsely
promised unusually high investment returns.
The schemes are fraudulent and are designed to defraud unsuspecting consumers. With the company delisting from the JSE in May 2025, ARC shares are not available for public trading or investment.
“Any person, group, website, email, or social media account claiming to offer investment opportunities in ARC shares, or promising returns linked to ARC, is acting fraudulently,” it said.
The company is also aware of scams that falsely claim to be endorsed by Motsepe to lend credibility to these schemes.
“Members of the public are advised that neither ARC nor its chairman endorses or participates in any investment schemes soliciting deposits from the public.”
“ARC does not accept investment deposits from members of the public. Any request for funds
purportedly on behalf of ARC should be treated as a scam.”
The company has thus told members of the public to remain vigilant and report any suspicious emails, WhatsApp groups, websites, or social media accounts that falsely claim to represent ARC to the police.
It added that members of the public who invest in these fraudulent schemes risk losing their money.
ARC was formed in 2015, focusing on acquiring a shareholding in businesses that deliver strong returns on equity.
The company is a subsidiary of Ubuntu-Botho Investments (UBI), a company Motsepe created in 2004 and is the BEE partner of Sanlam. With a 14% stake in Sanlam, UBI is the largest shareholder.
ARC may have been delisted from the JSE in 2025, but it remains well-known for its stakes in several major South African companies, including GoTyme Bank.
In addition to his roles at ARC, Motsepe is the chairman of African Rainbow Minerals and the President of the CAF. He is also the brother-in-law of President Cyril Ramaphosa.
Forbes estimates Motsepe’s net worth at $3.7 billion. Given his prominence as South Africa’s only black dollar billionaire, he is viewed as a potential successor to Ramaphosa as ANC President.
