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Guantum Dani, the Indian infrastructure billionaire, is making waves in East Africa and not everyone's happy. But even as a court suspends the Donny's plan to take over Kenya's main airport, he's doing more deals with the Kenyan government and uther governments across East Africa.
Their Danni Group are investing in the transmission line, their money ninety five billion. We would have otherwise gone to borrow that money, but the people of Kenya and it is important for us as a nation to appreciate that a partnership between public and a private sector gives us a win win outcome.
On this week's Next Africa Podcast, we'll ask who is Guantumadoni. Is he bringing much needed private sector investment to East Africa or are Kenyan's right to be worried that their assets are being sold off too cheaply. I'm Jennifer's Abasaja and this is the Next Africa Podcast, bringing you one story each week from the continent driving the future of
global growth with the context only Bloomberg can provide. Joining me to discuss Guantamadanni is pr Sanjay Bloomberg senior reporter based in Mumbai and also Helen Yambura, our East Africa bureau chief. Thank you both so much for being here and helping us unpack this story.
Sanjay, can we just start with you.
Can you give us a bit of background on A Donnie for people who maybe haven't heard much from him. I mean, how did he amass the billions that he has at this point?
But A Donnie Group is a watch conglomerate with the listed and unlisted subsidies doing business and everything from Paul to power, with a reach spanning from India to Africa and Australia. Over three decades, billionaire tycoon ga Adhani built a vast infrastructure network across India that's become indispensable for both local business and maybe foreign companies like Apple, Amazon, etc. After dropping out of college, Adhani tried this like in
Mumbai's diamond industry in early nineteen eighties. He soon moved back to his home state of Gujarat to run his brother's plastic business before setting up in nineteen eighty eight
Adani Enterprises Limited, the group's flagship commodity trader. A decade later, he started to operate the Port of Mundra, which is located on the coast of arabianc eventually building India's largest private sector port operator, and it operates airports, It operates ports, it has transmission lines, it has Glean energy farm which is ready. That is everything everything.
So maybe then let's bring in Helen into the conversation. Helen, and let's talk about Kenya, because this is really why we are talking about Donnie in our Next Africa podcast and what he's been doing specifically in East Africa. Helen, can you just give us some context as to the investments that a Donnie has been looking at in Kenya, maybe specifically.
So what we've heard is two deals. The first deal is in transmission lines, so different subsidiaries in the way the conglomerates have been looking at different sectors. But earlier this month, the Kenyan Energy Ministry announced that the government has center deal for transmission lines for about seven thirty six million dollars. Danny, the subsidiary that's looking to do this, wants to finance, construct and to perate those lines for
three decades. We've seen that the Kenyan High Court has suspended that deal and similarly it's suspended another deal in which another yet another subsidiary over Danny wants to lease the biggest airport in Kenya, that's a jomokin At Airport in the capitol, Nairobi. It wants to lease and operate that airport for thirty years, so a similar length of time as the transmission lines that it wants to put up.
It initiated a private speed for the airport. So those are the two deals that have been confirmed in Kenya, but it's likely that it's also looking at other.
Sectors other places too, Helen, right, I mean, Kenya isn't the only place that Dani has been eyeing in terms of new deals.
The deals in Kenya have been a bit controversial, but in neighboring t and Zania, we've seen at least two deals. We've seen the Adani's he talks to invest about nine hundred million dollars in power transmission lines, so something similar to Kenya. It's also acquired shareholding in Tanzania International Container Terminal Services in a joint venture together with Abu Dhabi Ports,
so that's the biggest container company in Tanzania. And separately, it's one right to operate the biggest container terminal at the dress Lamport, which handles about eighty percent of Tanzania's container volume. All these deals Tanzania and Kenya have been announced in the past one year. So in just a few months we've seen about five separate deals been announced in East Africa.
Yeah, so very clearly targeting East Africa, Sanjai, I mean, why is Adani focusing his efforts then on the region? I mean what do you make of this, especially as you paint a picture for us about what he has been doing in his own home country.
I mean why East Africa now, So it's a very interesting question.
So this is the world which is looking beyond China or China plus one. It is indeed a kind of a Chinese styled expansion by Adani here a conglomerate. Adani Group has touched all walks of lives in India and as a natural progression, it would definitely look beyond India.
Of course, his heart is where home is.
He's focusing more in intensifying investments in India, but he would also look beyond India, and it is indeed a Chinese styled expansion by the conglomerate. Those potential ventures include Bangladesh, East Africa, Southeast Asian nations including Tanzania, Vietnam, Sri Lanka, and Israel with the Haifa Port Israel, Bhutan, et cetera.
So East African nations, what the thinking of the conglomerate is like the air to have type where there is a two way trade between India and those nations and they claim that there's historic trade links there between East African nations and India.
Stick with us, Sanjay and Helen. When we come back, we're going to dig into more of these investments by Adanni outside of India and even some of the controversies around them, as Helen pointed out.
So we'll be right back.
So welcome back today on the podcast, we're looking into Indian billionaire Guantamadani, whose investments in East Africa are coming under scrutiny but also getting quite a bit of attention. We have PR Sanjay and also Helen Yambura joining us. Helen, let's just go back to you and talk about what's been happening in particular in Kenya.
You talked about this a bit.
There was a court that did suspend the deal to buy the biggest airport in Yeah, but before that there were also protests and strikes around this initial deal. I mean, why was there so much concern and criticism about a Danny trying to make this deal happen.
This new contention that Kenya needs the private capital for the really big infrastructure project. Kenyan is in dire straits in terms of its public finances. So yeah, everybody agrees that Kenya does need, you know, foreign direct investment from companies with deep pockets. But the reason that this proposal has met with so much resistance is the opacity that surrounds it. We only got to know this deal through a whistle blower who reached out to Kenyan lawmaker a
Senate term. Also, the terms of the deals are a bit questionable. According to Kenyan's at the end of the thirty year concession, a Danny is going to holders take in it. Even the amount of one point eight billion dollars investment seems a little too little for the type of investment that's needed to keep the Kenyan Airport as a leader in the region. We have Ethiopia and Ruanda investing double almost triple that amount to create hubs for themselves.
That's the main fear that I'm hearing with Kenyons that you know, a done will come in and there'll be job losses, and that's what led to the strike by a Vision workers one day. They disrupted operations in what's a really key hub for the region.
Sandrea is mentioning Chinese investment in the region, and I remember in twenty twenty two during the Kenyon election just talking about you know, Chinese investment into different infrastructure. So potentially that is where some of the skepticism comes from.
You know.
I bring that election up because I wanted to know President Ruto sort of where he falls in this, because he clearly cannot ignore the issues that are coming up around the steal.
I mean, what has he been saying.
So President Trutu says that he needs all the money that he can get for big infrastructure projects, capital intensive projects, but his hands are tied in that he does not have the weigle room to borrow some more. So whatever development projects that he wants to see role that will have to come through private investment or public private partnerships. So he is pushing for all the money that he can get to do all those projects, whether it's electricity transmission,
whether it's roads, realis and so on. He defended the transmission deal with the DANEY, saying that it will help lower the cost of power in the country. Is defended private investment in poler generation, in geothermal and root construction is so on and Sanja.
What are the concerns about Donnie's businesses Helen speaking from the perspective within Kenya, but there's suggestions that the group is also facing scrutiny from regulators globally.
A DANI has always faced similar challenges in its history. When it went to Australia with Carmichael Mine, the Green Group was up and arms and they protested to the nail and they still remained firm in Australia. And now when they have investment, a huge investment in Sri Lanka and when there's a political change, regime change, they are also facing similarities with Sri Lanka now Kenny I, so
they are facing similar protesting Kenny as well. So the main concern would be after Hindenburgk's research allegation January twenty twenty three, they were trying to firmly coming back to their aggressive expansion mode and then immediately they are facing similar protests from Sri Lanka Kenya and even in the case of Bangladesh because they were facing some issues with getting funds because there's a change in the political regime.
So the immediate concern of Adani as a conglomerate would be how to cool off, how to mitigate, how to tie over the geopolitical crisis at this point of time.
So then sandre just on that, I mean, do any of those other situations then potentially point to how they will handle what's happening in Kenya.
So they are on a wait and watch mode because as Helen pointed out, Kenya indeed need foreign investments and Adani, which has been acclaimed for building airport's, ports and infrastructure projects, they are very keen to have that kind of links with.
Any country for that matter.
The idea for Radan is to make India as a maritime hub, and they are targeting countries that are high on manufacturing or high on population which will lead to high consumption. So Kenya or Tanzania both are very critical to their scheme of things, so they would take a pause and they would wait and watch. They will be adopting a weight and watch mode because it's so critical to their global expansion.
Strategy.
So there's no signs that he's going to be put off by any of the resistance at this point in time.
I don't think so. He is looking to get a foothold on the continent and I think he's going to succeed in doing it.
Sanjay Helen, thank you both so much for joining us, and you can read all of our coverage of the Adoni Group across Bloomberg platforms. Here's a few other stories we're watching in the region this week.
South Africa's coalition.
Government has delivered its first budget, showing improved growth forecast. This is the first budget since the new business friendly
coalition took office back in June. Elections in May stripped the anc of its parliamentary majority, or saying President Rama Posa to find coalition partners and Botswana's governing party is set to extend its almost six decade rule of the diamond rich Southern African nation after Wednesday's elections, securing a second five year term for President Massisi Messisi's Botswana Democratic Party has been in power since independence from Britain in
nineteen sixty six and currently has thirty eight seats in the legislature.
A majority.
The President says it's certain to maintain. And you can follow these stories across Bloomberg, including the Next Africa newsletter. Will put a link to that in the show notes. This program was produced by Adrian Bradley. Don't forget to follow and review this show wherever you usually get your podcasts. I'm Jennifer's Abastagia. Thanks as always for listening.