Gautam Adani, one of the biggest business tycoons and also one of the world’s wealthiest businessmen has currently had his eyes set on East Africa particularly Kenya. In the last few months, he has taken up a lot of moves which are directly aimed at increasing his control over the African Empire. His latest venture involves taking control of Kenya’s Jomo Kenyatta International Airport (JKIA). He is also planning on enhancing his presence in the port sector.
With these initiatives, the Adani Group will be able to take one step ahead towards enhancing its global presence. The global business tycoon will also be able to take his business to new heights and earn an excellent reputation for itself. The Adani Group’s revenue generation will also increase. The conglomerate will be able to diversify its portfolio and earn the reputation of being one of the biggest global conglomerates. The business group will also be able to recover from the losses that it incurred during the Adani Crisis.
Adani Group To Take Control Over Kenya’s Jomo Kenyatta International Airport (JKIA):
On 30th August 2024, Adani Enterprises incorporated Airports Infrastructure PLC (AIP). This Kenya-based subsidiary was set up by Global Airports Operator. This Abu Dhabi-based company is also a wholly-owned subsidiary of Adani Enterprises. This subsidiary was built with a share capital of Ksh 6.75 million. This involves 6,750 shares which are valued at Ksh 1,000. The Adani Group’s ambitious plan for this airport is to operate, maintain, and modernise the airport under a 30-year concession.
The recent proposition involves an investment of 350 million USD. This would be used for the development of a new terminal, apron, and taxiway system. An additional 92 million USD will also be spent on infrastructure improvement. As a part of the plan, the Adani Group also aims to carry out city-side development activities. It also plans on creating hospitality and business centres for travellers as well as city residents. However, this initiative taken up by the Adani Group was met with a lot of resistance.
The workers at the airport went on strike to protest the takeover of the airport by the Adani Group. As of now, the decision is still under review. Once the approvals are received, the Adani Group will start working on the terminal. By doing so, it will be able to increase its hold over the international airport sector. The global conglomerate will also be able to offer its passengers an extraordinary experience. It will no longer have to deal with the controversies of the Adani Crisis.
Other Project Plans in Africa:
In addition to acquiring control of the JKIA airport, the Adani Group’s power subsidiary, Adani Energy Solutions Limited, has also acquired the approval for a multi-million-dollar energy transmission project to be taken up in Kenya. This project would involve constructing and managing transmission lines across the country. This will be done under a public-private partnership framework. Adani Ports and Special Economic Zone, the logistics wing of the Adani Group, has also signed a 30-year concession agreement to operate container terminal 2 at the Dar es Salaam port which is in Tanzania.
The 39.5 million USD investment gives Adani a majority stake in the Tanzania International container terminal services which is a critical facility responsible for handling 83% of the continuous traffic. Despite the potential benefits of the African countries, there have been a lot of allegations. However, the Adani Group has been able to navigate the challenges and take up new projects in the country. The global conglomerate has plans to take up more projects in Tanzania in the upcoming months as well. This will ensure that the entire project operations can be carried out smoothly and effectively without any hindrance. The rumours of the Adani Crisis will also subside.
Conclusion:
The Adani Group has always been deeply interested in taking up various international ventures. Even amidst the ongoing controversies of the Adani Crisis, the global conglomerate will take a lot of steps which are directly aimed at ensuring its business experiences a boost. By taking up projects in Africa, the Adani Group will be able to further extend its global footprint. The global business group will also be able to acquire enhanced profitability from its business.
