Renowned as South Africa’s retail magnate, 82-year-old Christo Wiese is embarking on a nostalgic journey back to his roots.
Wiese, a seasoned investor credited with expanding Africa’s largest clothing retailer and the continent’s leading grocer, is revisiting a sector that marked the genesis of his illustrious career nearly fifty years ago: diamonds.
“Fascinated by the allure of diamonds, it’s an industry where perseverance can unexpectedly lead to life-changing discoveries,” Wiese shared during a luncheon amid the lush vineyards of Beau Constantia, Cape Town. “This stretch of the Atlantic Ocean boasts some of the world’s finest diamonds.”
The geological narrative traces the journey of diamond-bearing detritus from South Africa’s Orange River, transported over millennia to the southwestern coast. It’s here that Wiese envisions uncovering a significant find, driving the self-made tycoon to allocate a portion of his workday to his mining ventures. Notably, his efforts have already yielded a $10 million pink diamond.
Trans Hex Group Ltd., Wiese’s mining entity in collaboration with his son-in-law, envisions expanding its pursuits to include other coveted minerals like phosphate, lithium, gold, and platinum. Equipped with four sizable ships outfitted for underwater exploration, the endeavor requires substantial investment, with a state-of-the-art diamond recovery vessel costing up to $420 million.
While Wiese’s net worth stands at $1.2 billion, a significant decline from $7 billion following the 2017 collapse of Steinhoff International Holdings NV, he remains undeterred. Having initially ventured into alluvial diamonds in 1976, Wiese’s resurgence in diamond mining reflects his enduring appetite for ventures beyond the retail realm, despite enduring substantial losses.
Industry analysts caution that Wiese’s rekindled interest in diamond mining entails inherent risks, surpassing those encountered in the retail sector. However, Wiese’s financial prowess and willingness to explore riskier domains underscore his enduring spirit of adventure.
Born into a farming family in Upington, Wiese pursued a law degree before joining the retail landscape with Pep, eventually overseeing its transformation into Pepkor. His leadership saw Pepkor’s aggressive expansion, culminating in acquisitions across Africa and Europe, alongside the establishment of Shoprite Holdings Ltd., now the continent’s foremost grocer.
Despite setbacks, including his investment in Steinhoff, Wiese maintains a diverse portfolio, from gym chains to food manufacturing. His latest pursuit, marine diamond mining, diversifies his interests further, albeit not without challenges.
As marine diamond mining faces scrutiny from environmental advocates and regulatory uncertainties, Wiese remains optimistic about its economic benefits. He asserts that the endeavor, despite its complexities, contributes positively to employment and foreign currency earnings.
While the risks loom large, Wiese’s resilience and unwavering spirit underscore his enduring commitment to exploration and enterprise.
