INDIAN MANDALA Adani looks to Africa, but Nairobi airport calls for strike

Following the acquisition of the port of Dar es Salaam in Tanzania, the group of Indian billionaire Gautam Adani had begun negotiations with the Kenyan government to obtain the transfer of the airport for 30 years. The workers are opposed to this decision because they fear losing their jobs. Meanwhile, other acquisition possibilities have emerged in the energy sector, although investigations into share price manipulation are continuing.

New Delhi () – Hundreds of workers at Nairobi’s Jomo Kenyatta Airport (JKIA) have declared themselves strike in recent days to protest against the acquisition by the Adani Group, the business conglomerate run by Indian billionaire Gautam Adani, who is close to Prime Minister Narendra Modi. Adani is trying to expand its business in Africa, despite a series of ongoing investigations into stock market fraud and money laundering.

Lawyers and activists also opposed the proposed purchase, which would involve handing over the airport for 30 years in exchange for an investment of $1.85 billion. Kenya’s Supreme Court this week accepted the request and suspended the deal for the time being, pending the first hearing. The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC), which brought the case before the court, they hold The country can independently raise the same amount to upgrade the airport. The aviation workers’ union fears the deal will result in job cuts and worsening working conditions. Others fear the loss of revenue from the airport, which currently contributes 5% of Kenya’s national GDP.

JKIA is one of the continent’s busiest air hubs, handling 8.8 million passengers and 380,000 tonnes of cargo between 2022 and 2023, but is plagued by frequent power cuts and leaky roofs. Kenya’s Airports Authority believes the deal with the Adani Group will add a second runway and upgrade the passenger terminal, and the government has sought to reassure unions that the airport is not for sale.

But this is not the only project that could be implemented in Kenya (and in Africa). Yesterday, confirmed The Adani Group has submitted a proposal to Kenya Electricity Transmission Company (Ketraco), the national electricity company, for the acquisition of some lines, but the proposal is still under evaluation, the Kenyan head of government explained in Parliament.

In May, Adani Ports and Special Economic Zone signed an agreement with the Tanzanian Port Authority for the 30-year transfer of the container terminal in the port of Dar es Salaam. This represents an investment of 39.5 million dollars, which guarantees Adani a majority stake in Tanzania International Container Terminal Services, a structure that in turn manages 83% of the country’s container traffic. Adani Port is already the largest private port operator in India and controls 30% of all cargo movements on its coasts. It also acquired the port of Haifa, Israel, and the port of Colombo, Sri Lanka, beating out Chinese competition.

Indeed, Adani’s acquisitions are part of a growing confrontation with Chinese attempts to propose a new version of the Belt and Road Initiative in Africa, after many countries expressed their dissatisfaction with Beijing’s initiatives. India, like China, aspires to assume the role of leader of the global South in the eyes of the African continent.

However, as Kenyan workers repeatedly stressed during the strike in recent days, the Swiss authorities have frozen $310 million as part of an investigation into money laundering and counterfeiting of securities related to the Adani group. The company immediately declared that these accusations were unfounded. In January last year, the American investment research firm Hindenburg Research published a detailed report accusing Adani of manipulating the share price. In March, the Indian Supreme Court ordered the Securities and Exchange Board of India (SEBI), which regulates the stock market, to investigate the matter.

But Madhabi Puri Buch, director of SEBI, was also accused last month by Hindenburg Research of having links with Adani’s offshore funds and therefore of having tainted the investigations due to a conflict of interest. Five days ago the Congress, the main opposition party, critical delays in the SEBI investigation, saying that an investigation that was supposed to take two months has still not been concluded after a year and a half.