The Tanzanian government has decided to honor its $95 million port contract with the Adani Group, a major Indian conglomerate, despite ongoing allegations of bribery and fraud involving the company. This decision comes after U.S. authorities indicted Adani Group chairman Gautam Adani and his nephew for their alleged involvement in a $265 million bribery scheme targeting Indian officials to secure power-supply contracts.
Tanzania’s commitment to the agreement, which includes the operation of Container Terminal 2 at Dar es Salaam Port, was confirmed by a senior official from the Tanzania Ports Authority. The deal, signed in May, also included a share purchase agreement for Adani Ports to acquire a 95% stake in the state-owned Tanzania International Container Terminal Services. The port concession agreement runs for 30 years, further solidifying Adani’s presence in the region.
Director General of the Tanzania Ports Authority, Plasduce Mbossa, assured the public that the country is proceeding with the agreement in full compliance with its laws and regulations. “We don’t have any problems with anyone. Everything we are doing is according to our laws and agreements,” Mbossa said, responding to concerns over the allegations against Adani Group. He also emphasized that the company is abiding by the agreed terms and that any actions taken by others in response to the indictment are outside Tanzania’s jurisdiction.
The indictment of Gautam Adani and his nephew by U.S. authorities has sent shockwaves through financial markets. Following the charges, shares in Adani’s companies, including Adani Enterprises, Adani Green Energy, and Adani Ports, plunged by 20%. The allegations have raised questions about the group’s business practices and its influence in both India and beyond.
Tanzania’s stance contrasts sharply with Kenya’s response to the scandal. Earlier, Kenyan President William Ruto announced the cancellation of a significant contract with the Adani Group, which included a $736 million public-private partnership for the development of the country’s main airport. This move reflects growing scrutiny of Adani’s business dealings across the region.
Despite these challenges, Tanzania’s government has stood firm on its commitment to the Adani deal, underscoring the belief that the contract was legally sound and beneficial to the country’s economic interests. The deal is expected to enhance Tanzania’s infrastructure, increase port capacity, and improve its logistics sector, benefiting trade and regional connectivity.
As the controversy surrounding Adani continues, Tanzania’s unwavering support for the contract illustrates its determination to honor agreements made with foreign investors, even amid legal and political challenges.
