Faith Nyasuguta
Tanzania has chosen to uphold its contractual agreements with the Adani Group despite mounting international controversies and bribery allegations involving the Indian conglomerate’s billionaire chairman, Gautam Adani.
According to Reuters, the Tanzanian Ports Authority has confirmed the continuation of the $95 million port deal and other related projects. The decision comes as Adani faces serious allegations in the United States, where both Gautam Adani and his nephew have been indicted for their alleged roles in a $265 million scheme to bribe Indian officials to secure power-supply contracts.
The allegations against Adani have sent shockwaves globally, with significant repercussions for the conglomerate. Following the indictment, Adani’s flagship companies, including Adani Enterprises, Adani Green Energy, and Adani Ports and Special Economic Zone Ltd., suffered a sharp 20% drop in share value within hours of the news.
Adding to the challenges, Kenya recently announced the cancellation of key deals involving Adani. President William Ruto terminated a $736 million, 30-year public-private partnership signed with the Adani Group by Kenya’s energy ministry just weeks earlier. Ruto also scrapped a concession deal for the country’s main airport, signaling growing concerns over partnerships with the embattled conglomerate.
Despite these developments, Tanzania has maintained its stance. In May, Adani Ports, a subsidiary of the Adani Group, signed a 30-year concession agreement with Tanzania for the operation of Container Terminal 2 at Dar es Salaam port. The agreement also included the acquisition of a 95% stake in the state-owned Tanzania International Container Terminal Services for $95 million.
Plasduce Mbossa, the Director General of the Tanzania Ports Authority, defended the partnership, stating that all agreements with Adani were made in compliance with Tanzanian laws. “We don’t have any problems with anyone. Everything we are doing is according to our laws and agreements,” Mbossa told Reuters.
He further dismissed allegations of wrongdoing in Tanzania’s dealings with Adani, emphasizing that any actions taken against the conglomerate elsewhere were independent of Tanzania’s considerations.
The controversy surrounding Adani highlights the broader challenges faced by multinational corporations operating in developing regions. As global scrutiny intensifies, countries like Tanzania must balance their development goals with concerns over corporate governance and reputational risks.
While Kenya’s decision to distance itself from Adani reflects a cautious approach, Tanzania appears determined to proceed with its strategic partnership, citing adherence to local laws and agreements. However, the unfolding legal battles and international backlash could test the resilience of this partnership in the coming months.
Adani’s troubles also indicate the risks associated with high-profile global infrastructure projects, especially as they intersect with allegations of corruption and governance failures. As more revelations emerge, the Tanzanian government and its partners may face increasing pressure to reassess their commitments to the embattled conglomerate.
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