A South African court has ruled that billionaire Patrice Motsepe’s investment firm, African Rainbow Capital (ARC), is not liable in a $195 million lawsuit tied to a Tanzanian graphite project.
The case was brought by U.S.-based Pula Group, which alleged a breach of a confidentiality agreement. However, the Gauteng High Court found that the agreement in question was signed with African Rainbow Minerals (ARM), not ARC—meaning ARC had no legal obligation under the contract.
As a result, the court dismissed the claims against ARC, stating that any potential legal responsibility would rest with other entities involved, not the investment firm itself.
Despite the ruling in South Africa, the broader dispute is not fully resolved. Related legal proceedings connected to the same project are still ongoing in Tanzania, involving other companies linked to the case.
Overall, the decision marks a significant legal win for ARC, while highlighting the complexity of cross-border investment disputes involving Tanzania’s mining sector.