PREVIEW
Multi-billion dollar oil, gas and mineral deals are at risk after last year’s unprecedented election violence
President Samia Suluhu Hassan’s government has signed a deal worth US$540,000 per year with the Washington-based Ervin Graves Strategy Group as it seeks to boost its relations with the United States and convince investors that it can manage the political risks after the brutal repression of protestors after the election of 29 October.
Ministers were shaken in early December when the US State Department announced a full review of its relations with Dodoma, citing the ‘ongoing repression of religious freedom and free speech’. That could put at risk lucrative investments in liquefied natural gas, nickel and graphite projects (AC Vol 66 No 24, Hassan faces foreign anger and braces for more unrest).
Days later Hassan’s office said that the two sides were close to agreeing a $1.4 billion minerals deal. Senior Tanzania officials were assessing Washington lobbying companies for several months.
Keeping foreign investment and aid flowing and propping up the economy is critical to President Hassan’s hopes of stabilising the country and reasserting the legitimacy of her presidency (AC Vol 67 No 1, Economy holds the key to Hassan’s control).
He is not part of US President Donald Trump’s inner circle, but Ervin Graves co-founder Tom Graves, is a former Republican Congressman for Georgia. His contract with Tanzania commits him to ‘Identify and equip credible champions to reinforce Tanzania’s strategic value’.
The contract filed under the Foreign Agents’ Registration Act details standard lobbying and public relations work with a focus on maintaining US foreign direct investment and promoting Tanzania’s potential as a source of critical minerals and rare earths.
As minerals access has emerged as a foreign policy priority of the Trump administration, particularly in Africa. Ervin Graves says it will ‘highlight Tanzania’s robust rare earth mineral deposits.’
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