About

Number of years practice: 22

Principal practice areas: Project finance

Languages spoken: French and English

What is the geographical focus of your practice in Africa?

Pan-African practice with a particular focus on North and Francophone Africa, West Africa and East Africa.

Please describe the most important matters you have worked on in the African market in the last two years, including your role and the significance of the matter (if any) to the development of business and law.

I have worked on a number of high profile M&A matters over recent years, including acting as part of the team that advised ENGIE on the
US$3.9bn disposal of its upstream oil and gas business; and Maurel & Prom on its acquisition through a public tender offer by Pertamina. The broad spectrum of players in the African oil and gas market (particularly the emergence of financial buyers and private equity which has featured prominently over the past two years) is influencing the market.

The level of M&A activity in the oil and gas sector in Africa is still recovering in the wake of lower oil prices and has yet to regain its share of the international transaction market that we saw pre-2015. As exploration and production players sought to cut spending, rationalise
portfolios and limit exposure, potential deals have faced new challenges and as a result alternative transaction structures, players and approaches have emerged.

Parties are showing a readiness to adopt new deal structures and operating models in order to achieve successful outcomes.

What differentiates your practice from that of other private practice lawyers?

I started my career in the UK but have been based in Paris for 15 years. The combined civil law and common law nature of my practice has been particularly useful for my work in Africa; many of my clients have portfolios spanning many jurisdictions on the continent and the ability to deliver pan-African expertise in the languages that the client needs, and to draw on examples and experiences across the continent, has been hugely beneficial in developing my practice.

I have been fortunate to focus from very early in my career on African work, which accounts for almost 70% of my time on an annual basis. I have travelled throughout Africa on client files and worked on transactions in over 40 jurisdictions on the continent. This has brought with it some fantastic experiences and relationships forged over many years. Importantly, I hope it has also resulted in a better understanding of how to operate, appreciation of geopolitical risks, managing expectations and anticipating challenges.

Why has Africa been a particularly strong focus for you?

My father is Indian but grew up in Kenya, so I have always had a connection. The Herbert Smith Freehills Paris team has a strong focus on Africa, having made the decision in the late 1990s to build a core team of lawyers specialising in African projects and transactional work, long before the wave of firms that subsequently set up Africa desks in the last decade.

I was quickly caught up in the enthusiasm and passion for the continent shown by other members of the team (notably Stéphane Brabant, Bertrand Montembault and Rebecca Major), which extended beyond a simple client service offering to include a strong commitment to encouraging foreign investment in Africa to help the continent to reach its full potential, and helping local lawyers to build capacity and knowledge.

What changes have you seen in the appetite for Africa-based ventures and investments over the last five years?

Five years ago, it felt like there were [constant] Africa rising stories. With the fall of commodity prices and continued geopolitical risks, including resource nationalism concerns, the mood is now one of cautious optimism. Investments continue but with an even greater emphasis on detailed due diligence and transaction structuring. We have also seen new players and alternative funding structures to help bridge gaps and challenges.

The move towards a cleaner and greener world economy is also playing out in Africa, coupled with political momentum to improve energy access on the continent. We have also seen a big increase in the development of gas and LNG, including in particular in the Rovuma Basin in Mozambique, where the firm has been advising clients on the development of the gas fields straddling the Area 1 and 4 blocks and the proposed Coral FLNG project and onshore LNG facilities. We also advised Vitol on its involvement in the US$7bn Offshore Cape Three Points oil and gas project in Ghana with Eni, which will supply enough gas to power Ghana’s thermal power operations for 15 years.

One of the great advantages of working in Africa is the diversity, and as prices have stabilised we have also seen a return to exploration and development with the emergence of new regional hotspots such as Senegal, which has kept us busy.

Are there any aspects of the African legal market that you would like to see change?

I was speaking at Africa Oil Week last year and we ran a live poll with the audience on the greatest impediment to their investments. Regulatory uncertainty came out top, by a large margin. This is also consistent with a number of other Africa focussed surveys. Uncertain regulatory frameworks and slow administrative processes pose a real barrier to investment.

Otherwise, I am very interested in the development of regional regulatory frameworks. A great example is OHADA which has created a harmonised set of laws across West and Central Africa with 17 members, creating a clear and recognised set of rules which make it much easier for clients to operate across jurisdictions.

I will also be following with interest steps towards creating an African Continental Free Trade Area, the move towards a single continental market is ambitious and has the potential to significantly bolster intra-Africa trade and regional integration.

What megatrends do you think will shape the African market over the coming five years? How (if at all) will these trends affect your practice?

Beyond the transition to a greener economy and potential further regional integration, mentioned above, I would probably cite technology and innovation.

Earlier in my career there was a real drive towards enhancing local content (creating local jobs, generating local value, ensuring a genuine knowledge transfer and sharing of experience) and this remains a key and very vital theme today. Africa will become the youngest and most populous continent in the next few decades and high youth unemployment has wide reaching ramifications.

Previously, the question was about moving value, experience and jobs back into the continent, one of the next issues will be addressing this challenge as jobs become increasingly automated and how Africa as a continent can compete (or better still be at the forefront) of these innovation and technological advances. Local SMEs will also have a vital role to play, and as a firm we are re-shaping our service offering to meet the legal needs and requirements of these companies.

In the African energy and natural resources space, the industry continues to evolve. Our clients are optimising efficiencies across the value chain, strengthening balance sheets and introducing new technologies, whilst continuing to navigate complex regulatory environments, geopolitical risk, disputes and market disruption. Our specialist Africa oil and gas team (of which I am a member) is helping our clients shape new strategies to continue to grow and deliver value to stakeholders.