Indian Perspective on Africa
Related Arbitration
Nachiketa Mittal
Assistant Professor of Law
National Law University Odisha, Cuttack, India
Email: mittal.nachiketa@gmail.com
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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AFRICA ATTRACTION
(Trade and Commerce)
 Rich in natural resources- oil, gold, phosphate and copper
ores, etc.
 Telecommunication
services,
manufacturing,
food
processing, infrastructure & real estate, tourism, agriculture,
etc. Pharmaceutical & medical sector.
 Automobile sector.
 Presence of large Diasporas in east and southern Africa.
The views expressed are solely personal and shall not be considered as an institutional opinion.
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INDIAN PLAYERS & O-FDI
(In AFRICA)
 Most Indian players in Africa -private Multi National
Enterprises (MNEs).
 Acquiring established business- eyeing vertical integration.
 Indian companies have largely entered Africa as individual
businesses, while others, including Chinese firms, have
benefitted
from
strong
government-to-government
initiatives.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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INDIAN PLAYERS & O-FDI
(In AFRICA)
 India is Africa’s fourth-largest trading partner behind the EU,
China and the US. Bilateral trade expected to reach USD
90bn by 2015.
 India’s investments in Africa close to USD 50bn.
 India has all three kinds of investments in Africa: Joint
Ventures; Greenfield
Acquisitions (M&A)
Investments
and
The views expressed are solely personal and shall not be considered as an institutional opinion.
Mergers
&
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REGION SPECIFIC TALK
(Southern Africa Perspective)
 In Southern Africa –Mauritius and South Africa are major
States -attracting Indian interest.
 Indian companies doing business in Mauritius include public
sector giants like Indian Oil, SBI, LIC, Bank of Baroda, New
India Assurance Company, Telecommunications Consultant
India Ltd and Mahanagar Telephone (Mauritius) Ltd.
 Besides, a host of private sector entities, such as Infosys,
Oberoi Group, Apollo, Fortis, Essar, Essel, Amity, Binani
Cements and Bharat Telecom are also present.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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(Southern Africa Perspective)
Indian companies are currently executing projects worth over
US$ 6 billion in South Africa. Major investors include Tatas
(vehicles, IT, ferrochrome plant), the UB Group (beer
manufacture, hotels), Mahindras (utility vehicles) and a number
of pharmaceutical companies, including Ranbaxy, CIPLA, etc.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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Indian Investment expected to rise in South Africa
Elizabeth Thabethe, the Deputy Minister of Trade & Industry,
South Africa, during 5th Investment & Trade Initiative in early
2014, said that total investment till now by Indian companies
has touched $6 billion and this is expected to touch $7 billion in
the coming years.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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India Inc. expanding base in African Telecom
Industry
Bharti Airtel is an Indian-headquartered mobile cellular operator,
founded in 1995. It is the market leader in India and has the
fourth- largest customer base in the world. Airtel entered the
African market in 2010 via the US$10.7b acquisition of Zain’s
assets in 15 countries (the largest ever cross-border transaction in
an emerging market). Airtel has subsequently entered 2 more
countries.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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REGION SPECIFIC TALK
(Western-Africa Perspective)
 West African countries in the recent past have witnessed
macroeconomic reforms, and advances in the areas of
governance, peace and security.
 Bilateral trade between Nigeria and India has for several
years been in excess of $10 billion.
 Nigeria is currently the second largest trade and investment
destination in Africa for India companies.
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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(Western-Africa Perspective)
 Recently, Indian High Commissioner to Nigeria, Rangaiah
Ghanashyam has decried the lack of multiple taxation avoidance
treaty and investment protection agreement between Nigeria
and India.
 Volume of trade is expected to rise to $20 billion by early 2015
between Nigeria and India.
 Major sectors- Power, industry, education, Information
Technology and Health
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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NEED FOR COLLECTIVE THINKING !
 Is sound FDI policy enough for enhancing business opportunities
in Africa?
 Why we need to look beyond investment regime?
 Why we need to explore arbitration landscape in Africa?
 What are the fundamental loopholes?
 How to plug the gaps?
The views expressed are solely personal and shall not be considered as an institutional opinion.
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ARBITRATION REGIME
South African & Western Africa
- Status of Legislative Approach
- Status of Judicial Approach
- Status of leveraging Regional Institutions of Arbitration
- Fresh perspective- need for external legal support
The views expressed are solely personal and shall not be considered as an institutional opinion.
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INVESTORS’ EXPECTATIONS &
WAY FORWARD
 Investment protection agreement
 Dispute resolution mechanism- Tripartite structure
Cost
effective
Time
bound
Amicable
Investment
Disputes
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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CONCLUSION
 Collective efforts- building culture of arbitration in
Africa
 Stakeholders – State, Lawyers, Law Schools,
Research Institutions and Business Corporations
 Enhancement of business opportunities (in Africa)
directly proportional to effective dispute resolution
system (Arbitration)
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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Words of Mahatma Gandhi
“ I realized that the true function of a lawyer was
to unite parties.......A large part of my time
during 20 years of my practice as a lawyer was
occupied in bringing about private compromises
of hundreds of cases.
I lost nothing thereby-not even money, certainly
no my soul”
.......Mahatma Gandhi
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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Words of Abraham Lincoln
“Discourage litigation. Persuade your neighbors
to compromise whenever you can. Point out to
them how the nominal winner is often a real
loser – in fees, expenses, and waste of time. As a
peacemaker the lawyer has a superior
opportunity of being a good man. There will still
be business enough.”
.........Abraham Lincoln, 1850
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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Words of Nelson Mandela
“Education is the most powerful
weapon which you can use to
change the world.”
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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THANK YOU
Developed and delivered byNachiketa Mitttal
Assistant Professor of Law
National Law University Odisha, Cuttack, India
Email: mittal.nachiketa@gmail.com
The views expressed are solely personal and shall not be considered as an institutional opinion.
4/13/2015
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