Ramaphosa's brother-in-law Motsepe in court over R3.4bn in Tanzanian

South African billionaire Patrice Motsepe, who is brother in Law to that country's President Cyril Ramaphosa, and his associate companies are facing a $195 million (R3.4 billion) lawsuit in Tanzania, with proceedings set to resume in the country’s commercial court on Monday. Tanzanian mining firm Pula Group has filed the suit, accusing Motsepe's firms, including African Rainbow Minerals (ARM), African Rainbow Capital, and ARCH Emerging Markets, of breaching a non-compete contract related to a graphite mining project.

Pula Group Chairman Charles Stith claims Motsepe’s companies violated a confidentiality and non-compete agreement by investing in Australia's Evolution Energy Minerals, a company developing a graphite project adjacent to Pula’s in Tanzania. Stith says the damages sought reflect a third-party valuation of Pula’s projected losses due to competitive disadvantages allegedly caused by ARM’s actions.

Stith, a former U.S. ambassador to Tanzania, stated that the breach undermines Tanzania's mining sector, where exploration is primarily led by foreign companies. He argues that the lawsuit could set a legal precedent, potentially protecting local mining firms from similar predatory practices by international companies.

The lawsuit has seen delays, with Stith alleging that ARM’s legal team has missed court appearances and disputed Tanzania's jurisdiction over the matter. ARM, meanwhile, has denied any wrongdoing, stating that it initially considered but ultimately declined an investment in Pula's graphite project, informing Pula of this decision. ARM maintains there was no breach of confidentiality or the non-compete agreement.

As the case moves forward, it is expected to draw attention to the competitive and regulatory environment facing local African mining companies in the face of international mining giants.