Partner, global head of international arbitration | DLA Piper
Michael Ostrove
Partner, global head of international arbitration | DLA Piper
Based in: New York
Number of years practice: 25
Principal practice areas: International arbitration
Languages spoken: English and French
What is the geographical focus of your practice in Africa?
DLA Piper has a pan-African practice, however my own personal geographical focuses are North and Francophone Africa, West Africa and Central 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’ve been fortunate to work on a number of significant matters in Africa over the past two years. Some key highlights during this time include the honour of leading the team representing the Republic of Guinea in the multibillion-dollar ICSID case brought by various BSGR companies. The claims were filed after the cancelation of BSGR’s rights relating to the Simandou and Zogota iron ore deposits – the largest and highest quality untapped iron ore deposits in the world. The case turns on Guinea’s determination, after a long investigation and administrative proceeding, that BSGR engaged in corrupt practices to obtain its rights.
The case has involved thousands of pages of submissions and 11 days of hearings. As part of a new transparency initiative, these ICSID proceedings were live-broadcast and can be viewed on ICSID’s YouTube channel. The case presents a major development in the extractive industries in Africa, and it is being closely watched to see how governments can address allegations of corruption in the granting of resource concessions. My team and I are also representing the State in parallel international criminal cooperation, as numerous authorities around the world have been investigating this matter.
I am currently lead counsel in a multimillion-euro ICSID arbitration against the Republic of Madagascar on behalf of a company in the textile industry and its shareholders. The case is significant to investors and states as it relates to a failure to protect the investors’ factory and to government interference with the local judicial process.
Working with my project finance team, I have been lead counsel on the negotiating team for the Government of Guinea in respect of the State’s direct agreements with lenders for a major investment in a bauxite mine. This is the first major project finance matter in Guinea and could provide a model for further investment.
I am representing the DR Congo in its fight against a US-based “vulture fund” that is seeking to enforce arbitral awards now worth nearly US$200m, in the first vulture fund litigation defence funded by the African Legal Support Facility, and our effective defence over what is now seven years of litigation has made the vulture fund business much less interesting!
What differentiates your practice from that of other private practice lawyers?
Africa has been a strategic focus for me for nearly 15 years, and it is a strategic priority for DLA Piper. I believe very strongly in working closely with lawyers in Africa and with government officials, and I value the relationships that I have developed with them. It is impossible to work in Africa without having a team that understands the legal, cultural and practical issues on the ground.
My Africa practice is uniquely strengthened by the fact that DLA Piper has offices in Casablanca and Johannesburg and – via DLA Piper Africa – has a presence in a further 18 countries. Our firm’s experience then stretches across the majority of remaining African jurisdictions.
Why has Africa been a particularly strong focus for you?
I am fortunate that my skillset has matched some great opportunities. Starting with aspects of the Ethiopia-Eritrea dispute, then with mining disputes in Katanga and extending to telecommunications and oil and gas matters around West Africa, I have been able to work on exciting matters for great clients.
I continue to focus on Africa in large part, however, because of the people I meet – and because I feel I can contribute in my own small way to the legal security that is necessary for economic growth on the continent.
What changes have you seen in the appetite for Africa-based ventures and investments over the last five years?
There has been a noticeable increase in the investment appetite over the past five to 10 years. First, investors recognised that economic growth was greater in Africa than elsewhere in the world, and a massive influx of investment from China and elsewhere then brought a new dynamic to the market.
More recently, we are seeing a spate of very sophisticated project finance deals supporting major infrastructure, energy and mining projects.
Are there any aspects of the African legal market that you would like to see change?
The African legal market includes a large number of very highly skilled practitioners. Many, however, have seen their practices limited to their local or regional markets. As more and more African lawyers spend time with major international firms, I would like to see the African firms either fully integrating with global law firms or at least creating pan-African law firms that will compete effectively with the international firms for major pieces of work.
We need to get away from a pure “international counsel and local counsel” model and move towards a “we are all international counsel” model. DLA Piper Africa is moving in that direction. While we are a leader in that sense, it is only a matter of time before the competition intensifies.
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?
There are so many things happening now, but one I would mention is the increase in African capital being invested in Africa. I see this trend growing. For my international arbitration practice, this has the potential lead to some serious changes. Parties will be under pressure to stop exporting their disputes to traditional arbitration centres like London, Paris and Geneva.
The CCJA will take on greater importance, as will other African arbitration centres like Nairobi, Casablanca, Kigali, Mauritius and South Africa. It will also be increasingly important to have a large number of qualified and reliable African arbitrators.