Insight type: Article

The COVID-19 pandemic has tested private equity firms in ways not seen before. In the first half of 2020, private equity activity took a sudden halt as COVID-19 took hold.

The Finance Act, 2020 which came into force on 1 July 2020, introduced a raft of changes to various legislations.

Since the coming into power of Prime Minister Abiy Ahmed, Ethiopia has undertaken a number of significant reforms, changes and amendments to existing laws.

The evolution of insolvency laws across the world has been aptly described as the “redefinition of insolvency from sin to risk, from moral failure to economic failure”. In the United Kingdom, for example, the treatment of debtors has significantly improved since medieval times, when failure to co-operate with bankruptcy commissioners would earn convicted bankrupts the death penalty. Kenya is no exception.

The global wave of increased transparency and disclosure requirements of ultimate beneficial owners (UBOs) has finally landed on East Africa’s shores. In 2020 and 2021, Kenya and Tanzania adopted regulations mandating disclosure of UBOs for entities registered in both jurisdictions. The UBO regulations are far-reaching in their scope and have important operational and tax implications for portfolio companies and investments held by private equity and venture capital investors in the region.

There has been a surge of interest in using artificial intelligence (AI) in healthcare in recent years. Artificial intelligence (AI) can potentially transform the field of medicine. Specifically, AI will most likely improve access to healthcare and how patients are treated, but it will also optimise resource allocation, allowing health systems to function more effectively and efficiently.

Private equity and venture capital funds (PEVC funds) domiciled in Kenya, or that wish to raise funds in Kenya, are currently regulated by the Capital Markets Authority. Recent amendments to the Capital Markets Act in 2020* expanded the remit of the CMA, enabling the CMA to licence, approve and regulate PEVC funds that indirectly have access to public funds in Kenya, with the aim of bringing PEVC funds that access public funds through public bodies and pension funds under the CMA’s remit.

31 December 2021 marked a long-anticipated landmark in the global financial market; with a few exceptions, the publication of the London Interbank Offered Rate (LIBOR) has ceased. Out of the 35 settings of LIBOR in CHF, EUR, GBP, USD and JPY, only 11 remain in place as of 1 January 2022.

The Infrastructure/ Public-Private Partnerships (PPP) Course Handbook – Level 2  was developed in collaboration with African Legal Support Facility (ALSF). ALSF is an international organisation hosted by the African Development Bank Group, dedicated to providing legal advice and technical assistance to African countries in the structuring and negotiation of complex commercial transactions and developing innovative tools for capacity building.

Infrastructure PPPs are complex and multifaceted undertakings characterized by multiple parties and their varying interests, complex risk considerations and protracted negotiations. The Level 2 Course Handbook provides detailed insight into the role of contracts in governing the complex PPP ecosystem. The handbook examines questions such as:

• Why are contracts so integral to the success of an infrastructure PPP?
• What is the role of joint development agreements and equity documents in the relationship between project developers/sponsors?
• How are risks appropriately allocated between government and a private party in a project agreement?
• What support or instruments can governments provide to drive private sector investment in emerging African markets?
• What types of financing documentation are used in project finance transactions?
• How are the numerous risks associated with constructing large-scale, high-value infrastructure PPPs catered for in construction contracts?

Through a thorough and cross-cutting assessment of the key contracts in a PPP project, the Level 2 Course Handbook provides a comprehensive look into infrastructure PPPs that will benefit government officials, project developers, lawyers, students, and anyone curious about the intricacies of PPPs.

Should you have any comments or queries on the handbook, please email projectsteam@africalegalnetwork.com