Keypoints:
- Talks progress despite US review over rights
- LNG and nickel deals in final negotiation
- Election violence raised investment concerns
TANZANIA and the United States are close to finalising multi-billion dollar investment deals in natural gas and critical minerals, even as Washington continues a review of its partnership with Dodoma following widespread violence during the country’s October election. The talks were confirmed during a meeting between President Samia Suluhu Hassan and Acting United States Ambassador to Tanzania, Andrew Lentz, at Chamwino State House in Dodoma, according to a statement released by Tanzania’s Directorate of Presidential Communications on December 8.
The discussions reflect a complex moment in bilateral relations. On December 4, the US State Department said recent government actions had created ‘grave concerns’ over the reliability of Tanzania as a partner, adding that the violence surrounding the election raised questions about human rights and the investment environment. The statement was reported by Reuters.
The government crackdown triggered protests after voting on October 29, which rights groups say left hundreds of people dead, though Tanzanian authorities dispute the figures as exaggerated. President Samia has defended the election as fair and pledged to investigate the killings.
Despite the tensions, the State House statement said both sides were committed to moving forward with major projects, signalling a dual-track approach from Washington: continued scrutiny of rights issues alongside sustained interest in strategic economic cooperation.
LNG and mineral projects enter final stage
During the Dodoma meeting, negotiations centred on three flagship investments: a $42bn liquefied natural gas (LNG) development, the $942 million Tembo Nickel project in Ngara, and the $300 million Mahenge Graphite project, which remains under negotiation. According to the statement, the LNG and nickel agreements are in their final stages, pending formal signing.
The LNG project is designed to unlock Tanzania’s offshore gas reserves, raise national revenue and support job creation. The Tembo Nickel initiative focuses on processing nickel for electric vehicle batteries, while the Mahenge project aims to produce high-grade graphite used in the battery and renewable-energy industries.
President Samia described the projects as ‘strategic’, saying: ‘We are determined to finalise them so they can unlock jobs, investment, and sustainable prosperity for our people.’
Lentz, cited in the statement, underscored US support for a private-sector approach, saying: ‘The United States is committed to a partnership based not on aid dependency but on shared prosperity.’
Election violence prompts review of relations
The State Department’s review marks a shift in tone from previous US engagement, which positioned Tanzania as a stable and reliable regional partner. Following the election, the US Embassy in Dar es Salaam issued security alerts for American citizens. Officials also cited concerns over restrictions on religious freedom and free speech in the period before and after voting.
Washington says the review will examine ‘persistent obstacles to US investment’ without specifying which regulations are under consideration. Analysts point to uncertainties in licensing frameworks, land acquisition processes and rules in strategic sectors such as energy and telecommunications. Businesses from the United States have previously raised questions about regulatory clarity and changes to investment terms.
Tanzanian government spokesperson Gerson Msigwa did not immediately respond to a request for comment on the review.
Shared interests drive cautious cooperation
Despite diplomatic friction, the State House statement emphasised broad cooperation in areas including regional security, economic reforms, private-sector participation and health partnerships. Tanzania highlighted the presence of more than 400 American companies currently operating in the country as evidence of investment confidence.
Lentz congratulated President Samia on her Vision 2050 development plan and said Washington was willing to support its implementation, including the administration’s ‘4R’ governance philosophy. Both sides agreed that strengthened communication, consistent engagement and timely action on pending agreements would be key to unlocking the full potential of the relationship.
Observers say the talks suggest neither side wants to derail long-term economic cooperation, even as pressure mounts over rights issues and the outcome of the US review could influence future engagement. The State House statement described the meeting as ‘a pivotal moment’ in redefining the relationship.
