The timing of this trip is certainly no coincidence: just days after U.S. President Joe Biden signed his $1 trillion infrastructure bill, U.S. Vice President Kamala Harris is on a trip to Africa promoting trade and promising investment to the countries she visits. Outstanding was the visit to Tanzania, where Harris met one-on-one with Tanzanian President Samia Suluhu Hassan. The visit may also be seen as a signal to China. China has invested heavily in Africa over the past two decades. Just last November, the Tanzanian president met with China’s President Xi Jinping during a state visit to Beijing.
The timing of this trip is certainly no coincidence: just days after U.S. President Joe Biden signed his $1 trillion infrastructure bill, U.S. Vice President Kamala Harris is on a trip to Africa promoting trade and promising investment to the countries she visits. Outstanding was the visit to Tanzania, where Harris met one-on-one with Tanzanian President Samia Suluhu Hassan. The visit may also be seen as a signal to China. China has invested heavily in Africa over the past two decades. Just last November, the Tanzanian president met with China’s President Xi Jinping during a state visit to Beijing.
Among the concrete outcomes of the state visit to Tanzania, according to Reuters news agency, is a memorandum of understanding between the Export-Import Bank of the United States (EXIM) and the government of Tanzania. This agreement is expected to provide financing of up to $500 million to help U.S. companies export goods and services to Tanzania, particularly in the areas of infrastructure, transportation, digital technology, climate and energy security, and power generation.
In particular, the U.S. supported LifeZone Metals’ plan to open a new processing plant in Tanzania for minerals used in batteries for electric vehicles. The plant is expected to supply battery-grade nickel to the United States and the global market as early as 2026. In the background is mining group BHP, which holds an indirect stake in LifeZone through its interest in the major Kabanga Nickel project.
Reuters quotes Harris as follows: “This project is an important and pioneering model using innovative and low-emission standards. Importantly, the raw minerals will soon be processed in Tanzania by Tanzanians.”
Under Hassan, Tanzania has returned to international engagement after a period of isolation under her predecessor, John Magufuli, who canceled all foreign trips by his ministers and discouraged travel. Most recently, Hassan touted at the World Economic Forum in Davos, “We have everything when we talk about green energy-nickel, cobalt, copper…” Their goal is to increase mining’s share of GDP from 5.9% in 2019 to more than 10% in 2025.
The bottom line is that Tanzania is being courted by the Chinese and Americans alike because of its abundant potential for minerals. Following the political change at the top, an upswing in the mining industry is emerging in the country, with Tanzania specifically aiming to keep as much of the value added in the country as possible. The development particularly favors all those companies that have been active in the country for years, including Ecograf (ASX: EGR) with its new battery spin-off Innogy, but also Tembo Gold (TSXV: TEM). These companies have a years-long head start on those yet to enter Tanzania. Both Tembo and Ecograf/Innogy hibernated during the Magafuli period and are now being rewarded – albeit years late – with a first mover advantage in the country. Both companies have the opportunity to create a legacy in their respective sectors.
Disclaimer: GOLDINVEST Consulting GmbH publishes comments, analyses and news on https://goldinvest.de. These contents serve exclusively the information of the readers and do not represent a call to action, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they are in no way a substitute for individual expert investment advice and do not constitute an offer to sell the discussed stock(s) or a solicitation to buy or sell securities. It is expressly not a financial analysis, but a promotional/journalistic text. Readers who make investment decisions or execute transactions on the basis of the information provided here do so exclusively at their own risk. There is no contractual relationship between GOLDINVEST Consulting GmbH and its readers or the users of its offers, because our information refers only to the company, but not to the investment decision of the reader.
The purchase of securities is associated with high risks, which can lead to a total loss of the invested capital. The information published by GOLDINVEST Consulting GmbH and its authors is based on careful research. Nevertheless, any liability for financial losses or the content guarantee for timeliness, accuracy, adequacy and completeness of the articles offered here is expressly excluded. Please also note our terms of use.
According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares in some of the mentioned companies and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time, which could have an impact on the price performance of the shares concerned. Furthermore, GOLDINVEST Consulting GmbH is remunerated by the mentioned companies for reporting on these companies. This is another clear conflict of interest.
