Africa’s richest man, Aliko Dangote, has accused Tanzanian President John Magufuli of implementing policies that are unfriendly to foreign investors.
Speaking at the Financial Times Summit in London on Monday, Dangote, 60, said Magufuli is nationalist in his thinking and is trying to seize a majority shareholding of companies in Tanzania that are owned by foreigners.
Earlier this year President Magufuli signed a new mining bill into law which allows the government to take as much as 16% of foreign-owned mining companies for free. “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.” “It’s the wrong policy. Once you chase an investor out, it will be very difficult to bring that investor back.”
Last year, Magufuli approved a new finance bill which requires all mobile telecom companies operating in Tanzania to float 25% of their shares on Dar es Salaam’s thinly traded stock exchange. Vodacom, the country’s largest mobile phone company, has since complied with the directive. The government mopped up most of the shares on offer.