Tanzanian Court Hears $195 Million Lawsuit Against Motsepe
South African billionaire Patrice Motsepe and his companies, including African Rainbow Minerals (ARM), African Rainbow Capital, and ARCH Emerging Markets, face a $195 million lawsuit in Tanzania over alleged breaches of non-compete and confidentiality agreements. Filed by the Tanzanian subsidiary of U.S.-based mining firm Pula Group, the lawsuit claims Motsepe’s investments in Evolution Energy Minerals, an Australian mining company near Pula’s project, violated a two-year non-compete agreement.
Pula Group chairman, Charles Stith, a former U.S. ambassador to Tanzania, argues that the financial loss resulting from the alleged breach amounts to $195 million. According to Pula, Motsepe’s engagement with Evolution Energy Minerals created a competitive disadvantage that harmed Pula’s business.
However, Motsepe’s companies firmly deny the allegations, maintaining that Pula’s claims lack substance. ARM’s spokesperson explained that while they considered the Pula graphite project under a confidentiality agreement, they ultimately decided not to invest, which was communicated to Pula.
The case, one of Tanzania’s largest in its commercial court, resumes on Monday.
