By Business Insider Reporter
Tanzania has entered a decisive phase in its economic diplomacy, fast-tracking negotiations with the United States on three flagship investment projects worth more than US$ 43 billion.
The talks – held Monday at Chamwino State House between President Samia Suluhu Hassan and acting US Ambassador Andrew Lentz (pictured above) – signal a dramatic reset in bilateral relations and a renewed push to anchor Tanzania at the centre of global energy and critical mineral supply chains.
The move comes just days after a diplomatic standoff that saw Washington warn of a “comprehensive review” of relations, citing governance and investment concerns. The swift turnaround underscores the strategic importance both capitals attach to the LNG, nickel, and graphite projects, whose combined scale makes them among the largest foreign investments in East Africa.
State House described the Dodoma talks as a pivotal moment, with President Samia and Ambassador Lentz reaffirming a modern, private-sector-driven partnership aimed at long-term stability and shared prosperity.
For Tanzania, the shift signals a maturing foreign policy – one that embraces non-alignment but aggressively courts capital, technology and markets essential to achieving Dira 2050.
President Samia noted that more than 400 American companies are already investing in Tanzania, reinforcing the country’s investment appeal. Ambassador Lentz echoed the sentiment, emphasising that the partnership is focused on shared prosperity rather than aid dependency.
At the centre of the renewed engagement are three transformative projects. The US$ 42 billion LNG project, now in its final negotiation phase, is poised to become the largest investment in Tanzania’s history.
With sizeable offshore gas reserves, the project is expected to elevate Tanzania into the global energy export market, drive industrialisation, generate thousands of jobs and boost government revenues for decades.
Alongside LNG is the Tembo Nickel project in Ngara, valued at US$ 942 million. With electric vehicle demand surging globally, nickel has become a strategic mineral. The Tembo project anchors Tanzania within global battery supply chains at a critical moment for the clean-energy transition. Similarly, the US$ 300 million Mahenge Graphite project is set to enhance Tanzania’s position as a major supplier of high-grade graphite, another mineral essential for battery and renewable energy technologies.
The renewed cooperation follows a tense diplomatic period. Last week, Washington issued a strongly worded statement citing concerns over governance, restrictions on free speech, and barriers to U.S. investment, while signalling a review of bilateral ties. Yet Monday’s meeting demonstrated a clear willingness from both sides to look beyond the friction. The U.S. delegation praised President Samia’s 4R philosophy – Reconciliation, Resilience, Reforms and Rebuilding – acknowledging its role in improving Tanzania’s openness and investment environment.
President Samia reiterated Tanzania’s non-aligned foreign policy stance, emphasising that the country remains open to working with all partners who respect its sovereignty and development aspirations. Her message reflects a broader strategy: maintaining global partnerships while securing the capital and expertise needed to deliver Dira 2050.
The economic impact of the three mega-projects is expected to be far-reaching. LNG could redefine the country’s fiscal landscape, creating new revenue streams and enabling greater investment in infrastructure and industrialisation. Nickel and graphite, meanwhile, position Tanzania within global supply chains that are becoming more competitive and strategically important as countries rush to secure access to critical minerals.
More than 400 US companies currently operate in Tanzania, a figure expected to grow if confidence in the investment climate continues to strengthen.
Beyond these projects, the two sides discussed issues including political stability, regional security, governance reforms, health cooperation and people-to-people exchanges. The US delegation also expressed support for Tanzania’s Dira 2050 blueprint.
Monday’s engagement represents more than diplomatic repair – it marks the beginning of a more assertive phase in Tanzania’s economic diplomacy.
If the LNG, Tembo Nickel and Mahenge Graphite agreements progress to final signing, Tanzania will secure one of the most consequential investment packages in East Africa’s recent history. The deals carry the potential to reshape the country’s economic trajectory, elevate its global profile and redefine relations with the United States for a generation. For President Samia, the message is clear: Tanzania is ready to compete, ready to partner and ready to invest in a transformative future.
