19 July 2013 Infrastructure in Africa Conflicts and Instability – impact on and solutions for...
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19 July 2013 Infrastructure in Africa Conflicts and Instability – impact on and solutions for development of infrastructure G20 Africa Infrastructure Investment
19 July 2013 Infrastructure in Africa Conflicts and Instability
impact on and solutions for development of infrastructure G20
Africa Infrastructure Investment Conference
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Old Kuala Lumpur 2
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Kuala Lumpur today by night 3
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Kuala Lumpur today by day before a storm 4
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War what is it good for absolutely nothing!! Nearly half of the
continent's 53 countries are home to an active conflict or a
recently ended one; Mali, Uganda, Niger, Boko Haram, Sudan, Somalia
etc. etc. Quiet places such as Tanzania are the lonely exceptions;
Even user-friendly, tourist-filled Kenya blew up in 2008; A death
toll of tens of thousands of civilians each year; More than 5
million have died in Congo alone since 1998, the International
Rescue Committee has estimated; Boko Haram: 2011 Boko Haram struck
115 times and killed 550 people; UNCTAD report, FDI flows to
Nigeria fell to $6.1 billion (N933.3 billion) in 2010, a decline of
about 29 per cent from the $8.65 billion (N1.33 trillion) realized
in 2009 fiscal year. 5
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Chin Peng 6
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Malayan (Malaysia!!!) emergency Cut the insurgents off from
their supporters amongst the population; Establishment of new
villages; Cutting off food supply; Winning hearts and minds (Sir
Gerald Templar); Improving livelihood, education, food etc.;
Building new infrastructure; 7
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The bad news.. Investment is an aspect of financial tourism, it
settles where it finds peace!! War and conflict (usually) = no
investment [Miners may be a different breed!] Out of war: Poor
regulatory framework; Poor governance; Low technical skills; High
unemployment. 8
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.. and the good news Out of chaos come opportunities. Many
opportunities to make significant returns but investors still want
protection. 9
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The opportunity Infrastructure Critical to economic growth; Low
skills but high labour requirements = creation of employment:
Absorb demobilised combatants and returning refugees; PR advantages
creation of employment; Builds political capital next elections;
Lays foundations for growth and development. Makeni, Sierra Leone
bio-energy/power/irrigation project 2011: former headquarters town
of the rebel Revolutionary United Front (RUF); drove people away
from their homes; burned down the government buildings, police
stations and official residences but left the ordinary houses
intact; At end 2012, employed approximately 1,366 people; Will
create about 2,000 jobs when fully operational. 10
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But who finances it and bears risks? 11
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Private sector. 12
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What the UN says .. UN officials - development banks dont
assume enough of risk. Investors need more guarantees that their
projects wont suffer losses from political or legal changes in
Africas poorest nations - Mohamed El- Ashry, a senior fellow at the
United Nations Foundation. International institutions should
shoulder more of those risks - Achim Steiner, executive director of
the UN Environment Program. Public private partnerships are not
working because of too much risk on the private investors. Achim
Steiner again. 13
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Real change comes from within! Africa will conquer hunger when
African governments give Africans the tools and resources they need
to feed themselves. Change - real change - comes from within.
Kanayo Nwanze, IFAD President commenting on the situation in the
Horn of Africa, 22 August 2011 In Rwanda, we work to own our
development process President Paul Kagame of Rwanda 14
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MIGA - aaaaah!!! Political risk insurance. Halo effect - MIGAs
status as a member of the World Bank Group and its relationship
with shareholder governments provides additional leverage in
protecting investments. Expensive (can be as high as 20-25% of loan
amount). Stringent environmental criteria Equator Principles/World
Bank. Commercial PRI more suited for smaller transactions with
shorter lead times, availability when financial close is
uncertain/takes a long time is an issue. 15
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Investment treaties Bilateral or multilateral. Varying levels
of protection do your DD. Governments promote/sign investment
treaties to encourage FDI. Investors look to countries with strong
investment treaties. Analysis required. Contracting party?
Investment structuring e.g. through Mauritius. 16 19 July 2013
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M Nigeria to Libya Part 1 17 Michael Schabas - FCP
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Nigeria to Libya Part 2 - Trans-Sahara 2020 Vision LIBYA TO
CALABAR SHORTEST ROUTE ACROSS WEST AFRICA LINKS AFRICAS LARGEST
WORKFORCE TO THE WORLDS BUSIEST SHIPPING ROUTES NO MOUNTAINS, BUT
LOTS OF DESERT $3 BILLION MORE? 18
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Africa needs a push Africa is rising, and it needs a push. The
rest of the world is languishing, and it too needs a push. Africa
needs the world, and the world needs Africa. Each can give the
other a push. AfDB President, Donald Kaberuka 19
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GDP 20
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Ride the bumps "If you want to ride Africas business boom,
choose your country well and be ready for bumps on the road. But
the momentum is upward and you will be rewarded if you stay the
course!!!" REUTERS SUMMIT 2013 - Investing in Africa: mind the
bumps and rewards will come 21
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22 Dentons in Africa
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Dentons offices across the Globe 23
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Dentons in Africa 24 Africa presents some of the most dynamic
markets in the world. At a time of growth, positive change and new
opportunities, you need an innovative team with deep experience to
help you achieve your goals. Whether you are currently in Africa or
have potential interests on the continent, we are well positioned
to fulfill a complete range of transactions and advisory work. Our
presence spans the continent's Anglophone, Francophone and
Lusophone regions, as well as the key commercial centers around the
world that engage in business and investment in Africa.
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What others say about us 25 Best Pan-African Law Firm - Capital
markets and corporate (third consecutive year) - emeafinance
magazine Best Law Firm in Africa 2011 - emeafinance magazine The
firm has a long history of involvement in Africa and also has an
extensive network of associated firms in Africa, giving clients
access to substantial local expertise. - client quote, Chambers
Global 2013 (independent legal guide) Dentons has a really
dedicated practice - they've been involved for a long time - client
quote, Chambers Global 2013 (independent legal guide) amazing
lawyers who have a "clear understanding of the challenges involved
in working in emerging markets - Chambers 2013 (independent legal
guide) Established as one of the leaders for work in Africa - Legal
500 (independent legal guide) has both the network and the focus on
the issues that define these jurisdictions to give it a competitive
edge in Africa - Legal 500 (independent legal guide) Thanks to a
strong network of associations this experienced firm has the
ability to provide seamless, high-quality advice throughout the
continent - Legal 500 (independent legal guide
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The poor will have nothing to eat but the rich!!! 26
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27
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28 Raj Kulasingam 28 Raj Kulasingam Dentons Energy
Infrastructure and Project Finance Phone: +44 20 7246 7596 Email:
[email protected] Raj specialises in infrastructure and
utility projects in the power, transport (road and rail), water,
waste and oil and gas sectors. He has deep understanding and
experience of concessions and the regulation of the utility and
transport sectors and PFI/PPP projects. He has been advising on
PFI/PPP projects since 1995 and has advised on numerous ground
breaking PFI/PPP projects in the UK, Middle East, Far East and
Africa acting for a mixture of developers, sponsors, lenders and
governments. He has been working on projects in Africa since 2005
and is a frequent speaker and commentator on Africa related issues.
He is frequently on the ground in Africa and writes a monthly
column on PPP/infrastructure projects in a leading Nigerian journal
(Financial Nigeria). His current work includes advising on the Blue
Line Metro Project in Nigeria, an investment in an IPP in Nigeria,
a police PPP project in Uganda, a Nigerian oil and gas IPO, a hydro
project in Zambia and a sulfation plant in Malaysia.
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