Political Risk to the Mining Industry in Tanzania

Data Source: African Economic Outlook, National Accounts of Tanzania Mainland.

Data Source: African Economic Outlook, National Accounts of Tanzania Mainland.

Journal of Political Risk, Vol. 1, No. 2, June 2013.

By Ilan Cooper and Nathan Stevens

Long considered an anchor of East African stability, Tanzania has recently made headlines for aggressive expansion of its mining and extractive industries. In what might be considered growing pains, economic prosperity has strained government and civilian relations, and is increasingly testing the governance skills of Tanzania’s Ministries. Adverse investment laws, widening religious conflict, and proliferation of small arms and light weapons, however, tarnish Tanzania’s image as a peaceful and prosperous republic. Continue reading

Watch for greater Bangladesh Army attempts to quash unrest, and a further turn towards terrorism by militant student groups

Unrest in Bangladesh has increased due to trials against Jamaat-e-Islami leaders stemming from war crimes in 1971 (Washington Post). Watch for greater army involvement in attempts to quash violent protesters. Such military action is likely to increase a turn towards terrorism by extremist youth groups. The most active of such groups will be Jamaat-e-Islami’s militant youth wing — the Islami Chhatra Shibir (ICS).

The ICS is strongest in universities and a member of some legitimate international Islamic organizations. However, they are intolerant Wahhabists, linked to Bangladesh domestic terrorism, and likely connected to international terrorist organizations (University of Maryland).