The partnership between Robert Gumede, the controversial South African business mogul, and HPX Group—now rebranded as Ivanhoe Atlantic—has come under intense scrutiny, with far-reaching implications for Liberia’s investment climate.
Monrovia-February 24, 2025/ As allegations of institutional corruption and state capture swirl around Gumede, questions arise about the long-term consequences of his involvement in the ambitious “Liberty Corridor” rail infrastructure project, an initiative that was supposed to connect Guinea and Liberia.
During a parliamentary debate on February 10, 2025, Emme Louise Powell, spokesperson for South Africa’s Democratic Alliance (DA) on International Relations and Cooperation, leveled serious accusations against Robert Gumede.
Powell linked him to the deaths of 14 South African soldiers killed in the eastern Democratic Republic of Congo, suggesting that their tragic deaths were part of a broader scheme to safeguard the financial interests of the African National Congress (ANC) and its wealthy benefactors which includes him, Gumede.
“Mining rights and political interests intersect at the crossroads of our soldiers’ deaths, and our country needs to discuss this matter—loudly,” Powell asserted.
Gumede’s business practices have been under the microscope for years, with multiple investigations linking him to significant corruption scandals in South Africa. In 2024, the Special Investigating Unit (SIU) identified him as a key player in the controversial R600 million (US$32.6 million) personal protective equipment (PPE) contract, awarded during the COVID-19 pandemic.
The SIU alleged that Gumede’s company, Guma Group, had inflated costs and violated procurement regulations. Similarly, Gumede’s involvement in a R360 million (US$19.5 million) IT tender awarded to his company, GijimaAST, was flagged as irregular, prompting calls for its cancellation. These incidents underscore a disturbing pattern of unethical conduct, including bribery allegations tied to securing a R600 million (US$32.6 million) contract with Telkom in 2009.
Despite these red flags, Gumede has extended his business interests to Liberia through a partnership with Robert Friedland’s Ivanhoe/HPX Group. In February 2024, Gumede’s Guma Africa Group formed an alliance with HPX, now Ivanhoe Atlantic, to spearhead the called “Liberty Corridor” project.
This ambitious rail infrastructure project aims to connect Guinea and Liberia, facilitating the transportation of ore through Liberian ports for shipment. However, there are multiple reports that Guinea has firmly rejected any attempt to transport its ore via Liberia, and the shady manoeuvring with some Liberian Government officials in ignoring certain unexplained aspects of the project has faced opposition from key stakeholders.
Furthermore, it has been reported that Gumede’s HPX collaborators have been working closely with Minister of State Without Portfolio Mamaka Bility, attempting to leverage political influence to push forward the “Liberty Corridor” project, despite its highly speculative nature. With an estimated cost of between $3 billion and $5 billion, the project initially hoped to secure funding from the United States Government’s Countering the People’s Republic of China Malign Influence Fund. However, the U.S. Senate Foreign Affairs Committee recently blocked this funding, citing concerns that the project did not align with the fund’s strategic objectives.
Notably, despite ongoing investigations into Gumede’s alleged involvement in major corruption scandals in South Africa, HPX continues to maintain its partnership with him. This raises significant questions about the company’s commitment to ethical business practices and the risks associated with its ongoing collaboration with Gumede.
The Government of Liberia must exercise extreme caution in engaging with Robert Gumede and his business interests. The ongoing criminal investigations surrounding his business dealings, coupled with his history of unethical practices, pose serious risks to the integrity of Liberia’s public procurement processes. Moreover, the association with an individual under investigation for corruption could severely undermine Liberia’s reputation as an attractive destination for international investment.
The involvement of HPX and Gumede in the “Liberty Corridor” project presents a unique set of challenges. International investors and financial institutions are acutely sensitive to the risks associated with corruption and the lack of due diligence in selecting business partners. A failure to properly vet potential partners could deter future investment, deter credible financial institutions, and tarnish Liberia’s standing in the global business community.
Given the enormous scale of the lofty Liberty Corridor project, which could cost upwards of $5 billion, there is a very real risk that funds could be misallocated, contracts manipulated, and the interests of the Liberian people compromised for the personal gain of a few powerful individuals. The government must prioritize transparency, governance, and accountability to protect Liberia’s assets and safeguard the country’s long-term economic prosperity.
If the government is committed to fostering sustainable economic development, it must reassess its relationship with Gumede and HPX. Stringent due diligence measures must be implemented, ensuring that any infrastructure project in Liberia is managed by partners with a proven track record of ethical business practices and financial accountability. Only through a commitment to integrity and transparency can Liberia position itself as a beacon of investment in West Africa.
