Tanzania: Key investor accuses ‘Bulldozer’ president of scaring away investors

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One of the biggest investors in Tanzania has accused President John Magufuli of scaring away foreign investors with his policies.

Nigerian Aliko Dangote – the richest man in Africa and a major investor in Tanzania – is urging Magufui to rethink his policies on foreign investment. The president has introduced a number of new restrictions on foreign investors as part of his campaign against graft and corruption.

However, critics accuse the president of attempting to seize a majority shareholding of companies in Tanzania that are owned by foreigners.

Dangote criticises Magufuli

Speaking at the Financial Times Africa Summit in London, Aliko Dangote expressed his concerns about a string of recent policies introduced by John Magufuli targeting foreign investors.They’ve scared quite a lot of investors and scaring investors is not a good thing to do,” he said at the Financial Times Africa Summit in London. “Once an investor complains the rest will run away, they don’t even want to hear the details.

“They’ve scared quite a lot of investors and scaring investors is not a good thing to do,” he said. “Once an investor complains the rest will run away, they don’t even want to hear the details.”

Seizing assets

Earlier this year, Magufuli signed a new mining bill that requires the government to own at least 16% stake in mining projects. While last year, the president approved a new finance bill that requires telecoms companies to float a quarter of their shares on the Dar es Salaam stock exchange.

These are the kind of policies that concern Aliko Dangote, other investors and critics of Magufuli.

“The Government is coming through the back door to seize the assets,” Dangote said. “They can come back in the next few years and take a majority of the shares at their price, ” he added.

“It’s the wrong policy. Once you chase an investor out, it will be very difficult to bring that investor back.”

 

Featured image: YouTube

About Aaron Brooks

Aaron Brooks is a UK journalist who wants to cut out the international agendas in news. Spending his early years in both England and Northern Ireland he saw the difference between reality and media coverage at an early age. After graduating from the University of Chester with a BA in journalism, his travels revealed just how large the gap between news and the real world can be. As Editor-in-Chief at East Africa Monitor, it’s his job to provide a balanced view of what’s going on in the region for English-speaking audiences.