3 LegalNotes 9 Guest Column Insights from Mr. Dhrolia on investment from the UAE to Africa Mr. Alnoor Roshanali Dhrolia KENYA Mr. Dhrolia resides in Dubai, UAE, and is part of a family group that has been doing business in Africa for over 4 decades. Mr. Dhrolia’s group has invested in: mining and mining related services; steel rolling mills; agriculture; general trading; property development and construction affordable); Anjarwalla(both & conventional Khanna isandthe largest and small to medium scale industries. The group is currently operating in DR Congo, Angola, Kenya, corporate law firm in Eastern Africa. The Mozambique and the UAE. Group offices are located in Canada, China, India, South Africa, Tanzania, firm is ranked first in Kenya by various Kenya, DR Congo, UAE and Angola. legal guides, including Chambers Global, IFLR 1000, Legal 500, PLC Which Lawyer Africa in many aspects is considered a big power Trade relations between the Middle East and in Agriculture, heavy industries and and Euromoney World’s Africa are at all time high. The UAE remains unknown, Guide resultingto intheindividuals generation. at the forefront of these relations and is the refraining from venturing Leading Project Finance Lawyers. in. The Middle East’s largest FDI provider to Africa. In complications and corruption related Q: What measures should African Aleem & Khanna [email protected] this Tharani edition IofAnjarwalla Legal Notes, Anne IKiunuhe factors are often daunting. However, a Governments taking in order to bolster and Elizabeth Karanja speak to Mr. wide array of conventions and conferences UAE investment into Africa? Dhrolia, and get his insight on doing being hosted by Dubai has created a business between the UAE and Africa. strong awareness of Africa and the ignorance that once existed is slowly Mr. Dhrolia: Awareness is key. African dissipating. nations need to do effective investment road Q: What are the top 5 investment shows. It would be essential to have interdestinations and sectors in Africa for the Introduction governmental initiated business trips to UAE, and why are they favourites? Q: In your view, is the new wave of African countries, where one can see firstinvestment in Africa sustainable? hand what isdevelopments on offer. Kenya has seen a significant rise in infrastructure in the recent past, especially in the fields of real What can Africans do to gain the most Mr. Dhrolia: Africa is the emerging continent estate development, energy and transportation infrastructure. This has been caused various factors out ofby the investment fromincluding the UAE? a that presents tremendous business Q: How is investment demands into Africa caused from demand for housing by the rising population, infrastructure by growing investor interest in the opportunities. Nevertheless, many African Mr. Dhrolia: Absolutely sustainable. the UAE different from investment from country the Government’s countriesand are perceived to be difficult toVision work 2030 development blue print, whose aim is to achieve industrialization by Africa has such a level of needs throughout traditional Western partners of the US, and I 2030. feel that UAE Investors are quite thein year sectors and borders. The opportunities UK and Europe? cautious. Most investors initially prefer the that exist will cross many generations. more stable East African ones that pose That is exciting part. development Joint ventures Putting together an infrastructure project, be it skyscrapers, roads, power projects orthe a real estate lower barriers to entry. However, the Mr. Dhrolia: UAE has been able to unite need to be created with companies in the involves several constituent Aneffectively. integral The ingredient to any project is the construction seasonedamalgamating UAE Investors are still heavily Westelements. and East very region region in order to bring finance expertise invested in Nigeria, Ghana, andand conditions hosts a diverse range of investors are contract which sets outIvory theCoast terms pertaining to the that carrying out of the main building works in and knowledge to Africa. There is immense Angola. The primary sectors would be Real doing business in and from UAE. Servicing respect of the project. A well drafted contract that is clear on the terms could have a significant effectthere on the cost, poverty in Africa, however, is now a Estate, Oil & Gas, Trading of FMCGs, White African countries either by way of products generation that is able to afford getting timing and completion of the project. Consumer Electronics, Telecommunications or services is more simplified from UAE, overseas education. They are coming back and light industries. thereby making business easier. and making a difference. This is one What should a project contract provide for? strong area that we must partner into. We Q: What sectors do you consider as need to bring more of the younger Q: What are the common misconceptions/ largely ignored infor Africa, having of a generation back to bring new ideas and myths thatare investors from the UAE have The key concerns mostand developers project as follows: great potential for future investment ways of working. We need to create a very towards Africa, and how are they being from the UAE? strong vision for the continent and have busted? • ensuring that works are completed in accordance with the construction programme for the project; the courage to execute it… just like Dubai •Mr.ensuring that the works are completed within budget; has done! Mr. Dhrolia: It is simply a lack of information. Dhrolia: Tremendous opportunities lie Undertaking infrastructure projects in Kenya: Get the contract right! • where projects are to be financed, ensuring that the risk allocations in the various project contracts will be acceptable to potential lenders and financiers; and