Billionaire Patrice Motsepe escapes massive damages claim in Tanzania

Cape Town – South African billionaire Patrice Motsepe and companies linked to him have avoided a R3.23 billion damages claim after Tanzania’s High Court struck the long-running lawsuit brought by Pula Group from its roll, although the underlying allegations remain unresolved.

According to Daily Investor, the court ruling was delivered on 9 October 2026, with African Rainbow Minerals (ARM), the mining company founded by Motsepe, welcoming the decision.

“ARM welcomes the judgement,” the company said, adding that it had always viewed Pula’s claim as “unfounded and fabricated”.

The dispute stems from allegations by US-based Pula Group and its Tanzanian subsidiary, Pula Graphite Partners, that Motsepe-linked companies breached a confidentiality and non-compete agreement by investing in Australian-listed Evolution Energy Minerals. The company’s Chilalo graphite project in Tanzania is situated near Pula’s own graphite project.

Confidentiality agreement

Pula sought US$195 million in damages, equivalent to approximately R3.23 billion, alleging that confidential information obtained during earlier discussions about its project was improperly used to support an investment in a competing operation. The Motsepe-linked companies have disputed the allegations.

According to Moneyweb, the case was previously struck off the roll on 7 August after Judge F.M. Mirindo found that Pula had failed to join Evolution-related companies that were necessary parties to the proceedings.

The ruling did not determine whether the confidentiality agreement had been breached and did not award damages.

Pula subsequently lodged an appeal on 24 August, challenging the earlier decision. Its chairman, Charles Stith, indicated that the company was still considering its legal options.

South African legal battle

“We have appealed the earlier ruling on this case and beyond that we have the option to refile the suit,” Stith said. “This is not over by a long shot.”

The case follows a separate South African legal battle in which the Gauteng High Court ruled in April 2026 that African Rainbow Capital (ARC) could not be held liable under the agreement, which was concluded between Pula and ARM. As reported by IOL, the judgment distinguished ARC’s position from that of ARM, the company that signed the agreement.

While the latest Tanzanian ruling represents a procedural victory for Motsepe and the companies involved, it does not amount to a judicial finding that the alleged misuse of confidential information never occurred. Pula’s stated intention to pursue further legal options leaves the dispute potentially unresolved.