Indian Perspective on Africa Related Arbitration Nachiketa Mittal

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. 3/18/2018 1

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. 3/18/2018 2

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. 3/18/2018 3

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 90 bn by 2015. § India’s investments in Africa close to USD 50 bn. § 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 3/18/2018 & 4

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. 3/18/2018 5

(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. 3/18/2018 6

Indian Investment expected to rise in South Africa Elizabeth Thabethe, the Deputy Minister of Trade & Industry, South Africa, during 5 th 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. 3/18/2018 7

India Inc. expanding base in African Telecom Industry ered Airtel le Bharti 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. 7 b 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. 3/18/2018 8

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. 3/18/2018 9

(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. 3/18/2018 10

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. 3/18/2018 11

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. 3/18/2018 12

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. 3/18/2018 13

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 resolution system (Arbitration) The views expressed are solely personal and shall not be considered as an institutional opinion. dispute 3/18/2018 14

Words of Mahatma Gandhi “ I realized the true function a lawyerwas to unite that of parties. . . . A largepart of mytimeduring yearsof my 20 practice a lawyer occupied bringing as was in aboutprivate 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. 3/18/2018 15

Words of Abraham Lincoln “Discourage litigation. Persuade neighbors your to compromise whenever can. Pointout to themhowthe you nominal winner often realloser– in fees, is a expenses, and wasteof time. As a peacemaker lawyerhas a superior the opportunity being good of a man. There stillbebusiness will enough. ” . . Abraham Lincoln, 1850 The views expressed are solely personal and shall not be considered as an institutional opinion. 3/18/2018 16

Words of Nelson Mandela “Education the most powerful is weapon which you can use to change the world. ” The views expressed are solely personal and shall not be considered as an institutional opinion. 3/18/2018 17

THANK YOU Developed and delivered by. Nachiketa 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. 3/18/2018 18