ADR Updates

Structuring Energy and Natural Resource Investments into Sub Saharan Africa

Bill Clinton Visits Clinton Foundation Projects In Africa

An improving investment climate –

Perceptions of Africa as an investment destination are changing rapidly and parts of Africa are increasingly considered very attractive for foreign direct investment. Compare this to similar findings as recently as three or four years ago, and it becomes clear that there has been a remarkable change in Africa’s image in a short period of time.

The statistics suggest that these changing perceptions are justified. Africa’s share of global foreign direct investment stands at 5.7% – an all-time high, of which, notably, 80% is directed towards sub-Saharan Africa1. In addition, there has been a marked increase in intra-African investment. While the majority of this inward investment has been focused on the traditional extractive industries, it is worth noting that there is also a long-term trend towards increasing investments in consumer facing industries, such as financial services. Kenya, for example, is harnessing such investment to establish itself as a regional commercial financial hub…

Indian labourers prepare the flooded fie

On 24 September 2014, the Indian Supreme Court cancelled 214 out of the 218 existing coal-mining licenses. The only mining licences which were not cancelled were four coal blocks made to Government controlled undertakings linked to major state power projects, and which did not involve a joint venture with a private company.

The decision follows a report from federal auditors in 2012, which found that India had lost roughly US $33bn due to coalfield rights being sold off cheaply. The audit report was supported by an earlier judgment of the Indian Supreme Court on 25 August 2014 where the Court declared that all 218 coal mining licenses both to private and state companies were assigned illegally by the central government in a process that lacked transparency and was arbitrary and illegal.