Baba Sangara
JF-Expert Member
- Dec 16, 2007
- 293
- 154
Aliko Dangote, one of the biggest investors in Tanzania, has accused President John Magufuli of scaring away foreigners through policies that appear designed to seize a majority share of assets.
Mr Dangote, Africa’s richest man who has built a $650m cement plant in Tanzania, advised Mr Magufuli to “have a look at” his policies.
“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.”
Mr Magufuli, who is known as the Bulldozer, has in recent months put pressure on many investors as part of his campaign to fight corruption and government inefficiency.
He came to power two years ago promising to clean up the country’s endemic corruption. Investors initially welcomed his efforts, but have become increasingly alarmed as policies, such as those affecting tax demands and contract sanctity, have become more arbitrary.
The president accused London-listed Acacia Mining of underpaying $190m in taxes, prompting the miner to close some of its operations. Petra Diamonds, also listed in London, temporarily closed its Williamson mine in Tanzania after the government accused it of undervaluing a shipment.
One foreign investor, who declined to be named, described the investment climate in Tanzania as “sinister”.
Mr Dangote singled out for criticism a plan by parliament to allow the government to take 16 per cent of an investor’s assets for free. “It’s coming through the back door to seize the assets,” Mr Dangote said. “They can come back in the next few years and take a majority of the shares at their price.”
“It’s the wrong policy. Once you chase an investor out, it will be very difficult to bring that investor back.”
CHANZO: Financial Times
Mr Dangote, Africa’s richest man who has built a $650m cement plant in Tanzania, advised Mr Magufuli to “have a look at” his policies.
“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.”
Mr Magufuli, who is known as the Bulldozer, has in recent months put pressure on many investors as part of his campaign to fight corruption and government inefficiency.
He came to power two years ago promising to clean up the country’s endemic corruption. Investors initially welcomed his efforts, but have become increasingly alarmed as policies, such as those affecting tax demands and contract sanctity, have become more arbitrary.
The president accused London-listed Acacia Mining of underpaying $190m in taxes, prompting the miner to close some of its operations. Petra Diamonds, also listed in London, temporarily closed its Williamson mine in Tanzania after the government accused it of undervaluing a shipment.
One foreign investor, who declined to be named, described the investment climate in Tanzania as “sinister”.
Mr Dangote singled out for criticism a plan by parliament to allow the government to take 16 per cent of an investor’s assets for free. “It’s coming through the back door to seize the assets,” Mr Dangote said. “They can come back in the next few years and take a majority of the shares at their price.”
“It’s the wrong policy. Once you chase an investor out, it will be very difficult to bring that investor back.”
CHANZO: Financial Times
