ALN Academy Podcast

ALN Academy Talks| Financing sustainable projects in Africa. In this episode, Sonal Sejpal Partner, ALN Kenya and Head of Banking and finance sat down with Oliver Phillips, Associate Director of Sustainable Finance at Standard Chartered Bank to discuss sustainability with a key focus on financing sustainable projects in Africa.

In order to fully understand the concept, it is first important to understand what the term ‘sustainable finance’ means and the scope and objectives that are incorporated with it. According to the European Union (EU), sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable economic activities and projects. In Standard Chartered Bank, this objective involves delivering a net zero state from the bank financing by the year 2050 with alignment to its particular ambitions. This means that the lending book is aligned to achieving net zero with the aim of reducing emissions and promoting a green economy. This can only be achieved by maintaining a complete top-down view of all aspects of any business so as to help manage regulatory and compliance risks while also helping clients adhere to ethical and environmental standards. 

Sustainable finance and ESG cuts across various banking aspects such as trade finance and derivatives, market issuance, project financing and credit facilities for clients and other market trends. Standard Chartered provides an advisory function to the clients at the onset to strategize plans to narrow their criteria for ESG.  In Africa, there is a particular focus on having a ‘just-transition.’ The continent has made significant strides in coming up with strategies aimed at fulfilling the Paris Agreement. However, if this is not done in a responsible and just manner if the climate challenge or climate catastrophe is not dealt with effectively, there is a risk of leaving many people behind and ending up in a world with far more problems.

Financial growth is required to bridge the financial gap that Africa is currently experiencing. Only 10% of the SDGs are funded in Africa, compared to 90% in Europe, underlining the vast imbalance that must be bridged. There is an opportunity for investors to route these funds where they are most needed, such as in Africa, where responsible financing is critical to the continent's overall growth.

Any move to commercialize natural resources must begin with their protection, as there are vital African natural aspects that are often disregarded. Natural forest basins such as the Amazon receive a lot of attention, but the Congo Basin is often overlooked, despite being a massive carbon sink. Monetizing carbon and natural capital more widely have the potential to be extremely beneficial for African governments, corporations, and banks, since it provides a fresh source of debt repayment, particularly at a time when the global economy is in upheaval. Markets in Africa are developing new revenue sources to pay their debt and attract new investors, which increasingly include ESG initiatives. Despite the pitfalls and the challenges in achieving this, there is great potential for monetization of natural resources for the continent. 

Interviewee: Oliver Phillips, Associate Director, Sustainable Finance-Standard Chartered
Interviewer: Sonal Sejpal, Partner and Head of Banking and Finance, ALN Kenya

 Stay tuned for more content on the rule of law, governance, and sustainability.

ALN Academy Talks | Governance and COVID-19. When COVID-19 hit, IGAD collaborated with various partners to bridge the health materials supply gap, enhance access to healthcare services, and aid cross-border communities in Africa. In this episode, Aisha Abdallah, Board Director of the ALN Academy and Partner at ALN Kenya, and Dr Girum Maheteme, Regional Coordinator, IGAD COVID-19 Response, discussed the crucial lessons learned from this pandemic, the necessity for sufficient support from governments within the bloc, and the role that IGAD has played in coordinating the COVID-19 response over the last few years.

Populations living on the border, refugees, migrants, and internally displaced people are usually far from the centres and unable to access the supplies and materials required to safeguard themselves against COVID-19 and other pandemics. Expanding water and sanitation systems and health services as well as having a risk communication strategy and an emergency response system will increase pandemic preparedness.

The IGAD COVID-19 response team continues to work towards the establishment of cross-border committees between the states. They have agreed in partnership with the member states to focus on strengthening health systems in cross-border regions, which includes training and access to necessary resources, without compromising the existing health systems in the member states.

The Intergovernmental Authority on Development (IGAD) is a regional economic community bloc serving eight countries in the Horn of Africa, namely, Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and Uganda. Its mission is to work with and supplement the social development agendas of its member countries.

Stay tuned for more content on the rule of law, governance, and sustainability!

The ALN Academy Talks aims to promote conversations on rule of law and good governance across Africa for the development of the continent. In this episode, we sat down with Aisha Abdallah, Partner at ALN Kenya | Anjarwalla & Khanna and Board Director of the ALN Academy. Aisha heads the Disputes Resolution Department at Anjarwalla & Khanna. She is passionate and well-versed in issues around the rule of law. 

The rule of law in general means that there is a predictable legal regime that applies to everyone, and everyone is equal before the law and is protected. The rule of law in Africa is important because it is a way to ensure that we can access our rights and enforce them. Unfortunately, this has not been the case in Africa, as military coups and forced changes in government leadership have been witnessed. On the upside, however, positives such as the first female president in East Africa, Samia Suluhu, and countries such as Rwanda have robust female representation in government. 

When it comes to the rule of law and foreign investments, lenders are interested in knowing that when the money they invest in a country is protected, their interests remain protected and that in the event of a dispute, there will be fair treatment accorded to them. For governments trying to attract investment, the comparison measure is the country's status in terms of the rule of law. 

Lawyers operate in a legal context. If they don't work to improve the rule of law, they undermine their relevance. The responsibility, then, falls on legal practitioners to keep the government accountable with regard to the promotion of the rule of law.

In a nutshell, sustainable solutions for Africa that advance the rule of law need to be explored. What works for first-world countries may not necessarily work for Africa.

ALN Kenya | Anjarwalla & Khanna’s Project and Infrastructure Department has prepared a series of virtual trainings on public-private partnerships and project finance over the next few months. 

This series will explore, at an intermediary level, various project contracts and their interface. 

The aim of this MasterClass is to provide an introduction to project finance, its fundamental distinctions from corporate financing, and to look at two case studies that put the topic in context.

About the speaker: Amyn Mussa is a Partner and the Head of the Projects & Infrastructure Department at A&K and is generally considered the leading energy and projects lawyer in the country. He specialises in energy, projects, infrastructure, natural and renewable resources, as well as real estate and privatisation.

The ALN Academy Talks aims to promote conversations on rule of law, governance and sustainability for the development of Africa. In this episode, we partnered with the French Chamber of Commerce in Kenya and focused on renewable energy and particularly on the support that the French government is providing to Africa to promote green energy and energy efficiency, the role that French financiers and developers play in the development of the renewable energy sector in Africa and on the lessons that are to be learnt by African governments and policymakers based on the policies and strategies that have been developed by a number of European countries to promote renewable energy. 

As platforms to trade carbon or REDD credits continue to grow and develop in the West, what opportunities does Africa have to participate in and earn revenues from these activities? Carbon or REDD credits are a promising source of funding for renewable energy projects (and other green projects). With the ongoing and projected increase of the price of the credits and a stronger/easier certification process, the financing potential can increase. The recent and ongoing debate about the renegotiations of the Power Purchasing Agreement has shown that just adding renewable energy generation to the grid is not enough for a sustainable energy transition. The situation of the electricity system is very different in Europe compared to African countries. The main difference would be the existence of a Power market in Europe.

The French Group for Renewable Energies and Sustainable Cities in May 2016 in Nairobi by the French Minister of Environment and Energy has almost 200 members, private companies, and public agencies coordinated by the French Embassy in Nairobi.

France has been a historic partner in supporting countries across Africa in Renewable Energy. The French development agency, AFD has notably supported Kenya to build a more sustainable energy sector. With over 1 billion EUR of completed and ongoing financings.

Interviewee: Mathieu Ecoiffier, Regional Counsellor for Sustainable Development East Africa and Indian Ocean, from the French Treasury and Lead of the Club EnR Ville Durable
Interviewers: Amyn Musa, Partner at ALN Kenya | Anjarwalla & Khanna and Head of the Projects and Infrastructure Department of the firm,
Angelica Gutierrez Galvis, Head of the ALN Academy

In this episode, Mona K. Doshi, Partner, Co-head of the Private Practice Department at ALN Kenya | Anjarwalla & Khanna and Director of Adili Fiduciary Services, spoke on gender and succession with the particular aim of raising awareness on women's succession rights in Kenya. 

The legislation gives women equal succession rights and thus women need to be aware of their rights so that they can take care of themselves and their families. Women should learn to invest, manage finances, understand ownership of land and how to operate bank accounts. All children of a deceased parent have equal rights and are entitled to the deceased’s properties regardless of whether male or female. 

The ALN Academy Talks aims to promote conversations on rule of law, governance, and sustainability for the development of Africa and one of its core focus is gender. 

Interviewer: Angelica Gutierrez Galvis, Head of the ALN Academy
Interviewee: Mona K Doshi, Partner, Co-head of the Private Practice Department at ALN Kenya | Anjarwalla & Khanna and Director of Adili Fiduciary Services

Welcome to the ALN Academy podcast. In our previous MasterClass, Amyn Mussa provided an introduction to the foundational principles of PPPs and project financing and to the integral role of contracts in the structuring of PPP projects. The objective of today’s MasterClass is to introduce participants to the importance of proper risk allocation to the success of PPP projects. 

This MasterClass is part of a series of virtual trainings that The ALN Kenya | Anjarwalla & Khanna’s Project and Infrastructure Department has prepared on public-private partnerships and project finance.  

About the speaker: Amyn Mussa is a Partner and the Head of the Projects & Infrastructure Department at A&K and is generally considered the leading energy and projects lawyer in the country. He specialises in energy, projects, infrastructure, natural and renewable resources, as well as real estate and privatisation.

The ALN Academy Talks aims to promote conversations on rule of law and good governance across Africa for the development of the continent. We were delighted to host, Luisa Cetina, Director at ALN Kenya | Anjarwalla and Khanna who spoke on the recent guidelines issued by the Attorney General of Kenya for the preparation of procedures for the prevention of bribery and corruption in the country. 

The requirement on public and private entities to put in place procedures for the prevention of bribery and corruption is an obligation imposed by the Bribery Act. The Act provides that where a private entity fails to put in place the necessary procedures to prevent bribery and corruption and that failure is proved to have been committed with the consent or connivance of a director or senior officer of the entity, then that director or senior officer shall be liable upon conviction. 

Some of the salient features of these guidelines include various aspects of the guidelines that stand out. First is the requirement for entities to assess and map out bribery and corruption-related risks within their operations and develop a plan to mitigate those risks. Secondly, entities are required to have reporting mechanisms that facilitate timely reporting, access to reporting channels, confidentiality and the protection of whistle-blowers, informants, and witnesses. Lastly, there is a requirement to have a framework that allows for the protection of whistleblowers, informants and witnesses. This partly includes maintaining the confidentiality of the identity of whistle-blowers, informants and witnesses, the details of the bribery or corruption report, and the sources of information relating to the bribery or corruption report. 

Members of any organisation should feel safe and have a work environment that allows any potential witnesses or whistleblowers to confidently come up and report cases of bribery and corruption. Action should be taken against those who breach laws/policies relating to the prevention of bribery and corruption. 

The National Assembly has published the Whistleblower Protection Bill,2021. The Bill principally seeks to set out procedures for disclosing information on improper conduct within the public and private sectors and provide for a legal and institutional framework for the protection of whistleblowers. The Bill is still undergoing the legislative making process further details shall be provided once it is enacted into law.

ALN Kenya | Anjarwalla & Khanna, through its Dispute Resolution and Forensics and Investigations teams, has extensive experience providing investigatory, legal and advisory support to clients about Anti-Corruption and Bribery matters such as the development and implementation of prevention procedures in line with the statutory compliance obligations, as well as assistance to clients on their risk assessment, management and mitigation processes. Additionally, through Adili Trust One Limited one of ALN Kenya | Anjarwalla and Khanna’s affiliates, it provides state of the art whistleblowing services for entities.

The fight against bribery and corruption across Africa is a priority for national governments as well as international investors. Corruption is viewed as a cross-border issue and countries are cooperating via mutual legal assistance to fight against it. Foreign investors and companies operating in Africa have to comply with laws governing bribery and corruption or risk criminal sanctions and reputational damage. 

The ALN Academy Talks aims to promote conversations on rule of law and good governance through education across Africa for the development of the continent. We are delighted to invite you to listen to an interview with Rosa Nduati-Mutero, Partner at ALN Kenya | Anjarwalla and Khanna where we focused on rule of law and education in the frame of the ALN Kenya-CSR anchor event which took place at the Hope For Orphans Rescue Centre (HOREC) in Nairobi. Rosa is also the Head of CSR from the firm.

Education promotes the rule of law and a culture of lawfulness by encouraging learners to value and apply the principles of the rule of law in their daily lives. Supporting learners to move from ‘learning about the rule of law and the different forms of risks of crime to ‘learning to’ act, by committing to values and responsibilities based on human rights, being compelled to make informed decisions. 

The rule of law is fundamental to all aspects of society, both public and private, shaping the way individuals interact with each other and with public institutions in all sectors of society, forging relationships of trust and mutual accountability.

ALN strives to ensure that through its CSR and Pro Bono initiatives, it promotes the culture of giving back and contributes towards a positive social change for the development of Africa.

Interviewee: Rosa Nduati-Mutero, Partner ALN Kenya | Anjarwalla & Khanna  
Interviewer: Imelder Opiyo, ALN Academy Team
Presenter: Angelica Gutierrez Galvis, Head ALN Academy

This session conducted by Amyn Mussa, will provide an introduction to the foundational principles of PPPs and project financing and to the integral role of contracts in the structuring of PPP projects. Through this training, participants will gain a deeper understanding of drafting and negotiating various contracts typically used in large-scale project finance transactions, common forms of government support and credit enhancement, key principles of risk allocation, and the mainland and tax considerations to keep in mind when structuring projects. 

Amyn Mussa is a Partner at ALN Kenya | Anjarwalla & Khanna and Head of Practice of the Projects and Infrastructure Department.  His Department has prepared a series of virtual trainings on public-private partnerships and project finance. This series will explore, at an intermediary level, various project contracts and their interface.