Paula Hodges QC – GC Powerlist
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Private Practice Powerlist: Africa Specialists

Private Practice

Paula Hodges QC

Partner, head of global arbitration practice | Herbert Smith Freehills

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Private Practice Powerlist: Africa Specialists

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Paula Hodges QC

Partner, head of global arbitration practice | Herbert Smith Freehills

About

Based in: Number of years practice: 30

Principal practice areas: International arbitration

Languages spoken: English and French

What is the geographical focus of your practice in Africa?

Pan-African practice.

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 acted as lead counsel and advocate in an LCIA arbitration in London relating to the extremely valuable ownership rights in Tatu City, a new city being built outside Nairobi in Kenya. Important for foreign investment as upheld the rights of my client Rendeavour (founded by Stephen Jennings), over the attempts by the Kenyan partners to take over by fraudulent means.

I was lead international counsel for one of the world’s leading oil companies in an ad hoc arbitration in Lagos subject to the Nigerian Federal Arbitration Act relating to the redetermination of the equity interests held by various oil companies in an enormous oil field offshore Nigeria. [This was] an important development for Nigerian law and the oil industry in Nigeria as there were no Nigerian law precedents for dealing with such an issue, so submissions were based on English law precedents and international oil industry.

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

I have conducted cases all over Africa over the last 20 years, so have a good understanding of the very different cultures across the continent and the unpredictability of conducting business and disputes in Africa. The fact that my firm has undertaken work in all 54 jurisdictions means that I am also able to tap into that wealth of experience in developing a strategy for my clients.

Why has Africa been a particularly strong focus for you?

HSF has a very strong African practice for clients investing in Africa from all over the world, which means that I have been asked to assist a wide variety of clients when disputes have arisen.

Also, many of my clients operate in the oil and gas industry which is a very active sector in Africa, often leading to disputes.

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

The number of Asian clients investing in Africa has risen significantly. Also, the level of investment in sectors like telecoms, financial services, real estate and agriculture has increased steeply.

The energy and natural resources sector remains strong with significant investments in new jurisdictions like Mozambique, as well as more mature markets like Nigeria and South Africa.

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

Arbitrations in Africa inevitably spawn satellite litigation in the local courts. More mature legal markets like Nigeria and Kenya are producing well-reasoned judgments in complex commercial matters more consistently.

The judiciary in developing jurisdictions would benefit greatly from training in such matters and about arbitration. We have provided training to judges in Sierra Leone and Angola (by way of example) and this has been warmly received.

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?

African countries have the opportunity to lead the way in areas, such as, renewable energy and climate change and we will no doubt see many more projects in these fields. The trend of more mature African markets demanding more local content in projects funded by foreign investment is likely to continue and increase.

The balance of negotiating power will likely also continue to tilt towards local African parties as multinational companies compete for business and indigenous companies acquire more experience.


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