Long standing member of parliament in Tanzania, Zitto Kabwe is quoted as follows:
"The number one risk for foreign investors is that arbitration is to be done in local courts rather than a neutral place. This is a matter of trust. If our courts become fair in rendering justice, the place of arbitration shall not be a matter of concern. It takes time to build that trust, hence a friendlier approach must be adopted to encourage mining investors to invest in Tanzania. President Magufuli’s reforms brought hope. However, the results are yet to be seen."
IMO this may be the final hurdle as I think local content requirements in terms of banking, supply chain and recruitment may be of lesser concern from our bankers.
KNL Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held