The Adani Group, a powerhouse in infrastructure and energy, has rapidly expanded its operations across Africa, intertwining its ventures with India’s broader geopolitical strategy. The group’s projects in key sectors—ports, power, and aviation—are seen both as drivers of development and as flashpoints for controversy. At the heart of these debates lies the balance between national interests, corporate ambitions, and the influence of India’s diplomatic outreach under Prime Minister Narendra Modi.
Adani’s Strategic Investments in Africa
Since Modi became prime minister in 2014, the Adani Group has aggressively pursued international projects, with Africa emerging as a focal point. Its ventures are notable not only for their scale but also for their strategic significance.
1. Ports and Logistics
In May 2024, Adani secured a 30-year concession to operate a terminal at Tanzania’s Dar es Salaam port. This strategic port, a key trade gateway for East Africa, is now managed through a joint venture between Adani and Abu Dhabi’s AD Ports. The project promises to modernize the port and boost regional trade efficiency, but critics fear it may grant Adani significant control over maritime logistics.
2. Power Transmission and Energy
In Kenya, Adani was awarded a $1.3 billion contract to construct high-voltage power lines. This project, aligned with Kenya’s energy reforms, is crucial for improving the country’s power grid. However, concerns over the lack of competitive bidding have raised questions about transparency and accountability.
3. Aviation and Airport Management
Adani’s proposed 30-year lease of Nairobi’s Jomo Kenyatta International Airport was its first attempt at airport management outside India. Submitted in March 2024, the deal was approved under controversial circumstances. Public outcry and legal challenges led Kenya’s High Court to suspend the project in September 2024, amid concerns about sovereignty and the privatization of a profitable national asset.
Kenyan Backlash: Legal and Public Resistance
The airport deal in Kenya sparked widespread protests and legal challenges, highlighting public discontent with the lack of transparency.
Key Concerns:
- Sovereignty and Security: Critics argued that handing control of a strategic airport to a foreign entity could compromise national security.
- Transparency and Corruption: The absence of competitive bidding fueled suspicions of corruption and backroom dealings.
- Economic Impact: Activists warned that privatizing a profitable airport could lead to higher costs for passengers and reduced government revenue.
The Kenyan Human Rights Commission and national bar association led the legal challenge, resulting in a temporary halt to the deal. Opposition leaders and civil society groups celebrated the court’s decision, framing it as a victory for public accountability.
Adani’s Role in India’s Africa Policy
Adani’s African ventures closely mirror India’s diplomatic outreach under Modi, raising questions about the interplay between business interests and national strategy.
1. Diplomatic Alignment
Adani’s projects often follow high-level diplomatic visits:
- Kenya: The Kenyan President’s visit to India in December 2023 preceded Adani’s airport proposal by just three months.
- Tanzania: The port deal followed Tanzanian President Samia Suluhu’s visit to Delhi in 2023.
- Bangladesh and Sri Lanka: Similar patterns have emerged in South Asia, with Adani’s projects aligning with Modi’s diplomatic engagements.
2. Geopolitical Strategy
Adani’s investments align with India’s goal of countering China’s Belt and Road Initiative (BRI). By positioning itself as a development partner, India strengthens its ties with African nations and promotes an alternative vision of regional development.
Controversies and Allegations of Cronyism
Adani’s rapid global expansion has drawn accusations of crony capitalism and corporate favoritism. Critics point to its close ties with the Modi government, with Congress leader Rahul Gandhi famously dubbing India’s foreign policy as “Adani ji’s foreign policy.”
Key Allegations:
- Corporate Fraud: The group has faced scrutiny following allegations of fraud and money laundering, notably from Hindenburg Research.
- Crony Capitalism: Critics argue that Adani’s success is closely linked to government support, raising concerns about the risks of promoting a single conglomerate in diplomatic engagements.
India’s Broader Corporate Presence in Africa
While Adani dominates headlines, several Indian companies are contributing to Africa’s development across various sectors:
Key Players:
- Tata Group: Operating in sectors like automobiles, steel, and IT, with vehicle assembly plants in South Africa and Kenya.
- Bharti Airtel: A major telecom player in 14 African countries, including Nigeria and Kenya.
- Mahindra & Mahindra: Active in agriculture and energy, providing tractors and solar power solutions.
- Vedanta Resources: Engaged in mining operations in Zambia and South Africa.
- Larsen & Toubro (L&T): Infrastructure and power projects in Nigeria and Kenya.
- Cipla & Sun Pharma: Providing affordable healthcare across Africa.
Balancing Power and Profit: The Road Ahead
Adani’s ventures in Africa highlight the complexities of balancing private enterprise with public diplomacy. While infrastructure investments can drive economic growth and foster bilateral ties, the controversies surrounding Adani underscore the need for transparency and fair competition.