By Vaishali Basu Sharma
Kenya’s Jomo Kenyatta International Airport (JKIA) is set for a major transformation, with India’s Adani Group poised to take over operations. Over the years, the airport has grappled with issues ranging from water leakages to frequent power outages, requiring a substantial overhaul.
Earlier this year, the Adani Group submitted a privately initiated proposal (PIP) for a 30-year concession to expand and operate JKIA under a “build, operate, and transfer” model. While this has raised concerns among Kenya Airports Authority (KAA) employees, who recently went on strike over job security fears, the Adani Group has reassured that all KAA employees will retain their positions under existing terms.
Ms. Vaishali Basu Sharma is an analyst on geopolitical and macroeconomic issues.
Instead of resisting this partnership, Kenya can use it as a catalyst for development and economic growth. Adani’s investment in JKIA not only promises modernization of critical infrastructure but also symbolizes a broader trend of Indian investments fostering positive economic growth in Africa, including Kenya.
A Legacy of Indian Investments in Africa
For decades, Indian investments have played a significant role in Africa’s economic growth, from retail and hospitality to infrastructure and telecommunications. Indian companies have a reputation for sustainable and socially conscious growth, with major players like Tata, Bharti Airtel, and Mahindra strengthening ties with Africa and generating employment, skill development, and economic progress.
In Kenya, Indian businesses have been pivotal in sectors like healthcare and agriculture. Apollo Hospitals, one of India’s largest healthcare providers, has set up joint ventures to enhance access to healthcare services. Indian-owned tea plantations have long provided employment for thousands of Kenyan workers, contributing to the rural economy. This relationship is mutually beneficial, with Indian companies bringing capital, expertise, and job opportunities to Kenyan communities.
Adani’s Role in Kenya’s Infrastructure Modernization
The Adani Group, a global powerhouse with expertise in infrastructure, port management, and energy, brings a wealth of experience to Kenya. The group has successfully transformed airports and ports in India into world-class facilities, improving efficiency, and driving economic growth. In places like Mumbai and Mundra, Adani’s investment has created state-of-the-art infrastructure, boosted tourism, and facilitated trade.
At JKIA, Adani’s involvement will likely result in capital infusion for necessary upgrades such as runway enhancement, terminal improvements, and expanded cargo facilities. A modernized airport will strengthen Kenya’s position as the business and tourism hub of East Africa, boosting its capacity to handle increased passenger traffic, bolstering trade links, and attracting foreign investment. This will lead to long-term job creation across tourism, hospitality, and related sectors.
Addressing Job Concerns: Adani’s Commitment to Local Employment
One of the primary concerns among KAA employees has been the fear of job losses. However, Adani’s track record shows its commitment to local employment. In its port operations in India, the company has not only hired local workers but also invested in skill development and training to equip employees for modernization brought by new technologies.
In Kenya, Adani can replicate this model by creating new roles in areas such as administration, logistics, and customer service. Additionally, the company’s focus on sustainability and green infrastructure could open up opportunities in renewable energy, which aligns with Kenya’s potential in the sector. A well-negotiated partnership between Adani and the Kenyan government could ensure that jobs are not only preserved but also expanded in alignment with the country’s growing economic ambitions.
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India-Africa Relations: A Future of Shared Growth
India and Africa have long-standing cultural and economic ties, with India emerging as a key development partner for the continent. Indian investments are not driven by short-term profit but by a long-term vision of mutual prosperity. According to the Confederation of Indian Industry (CII), Indian businesses have created more than 600,000 jobs across Africa.
India has also played a pivotal role in Africa’s healthcare and technology sectors. Initiatives like the Pan-African E-Network Project provide telemedicine and tele-education services to remote regions in Africa, underscoring India’s commitment to human capital development. This holistic approach has reinforced India’s presence in Africa as not just an economic partner but also a contributor to education, healthcare, and skill development.
Adani’s takeover of JKIA should not be viewed as a threat but as an opportunity for Kenya to leapfrog into a new era of economic progress. India’s past investments in Kenya and across Africa have driven innovation and growth, and Adani’s involvement is likely to yield similar benefits. Rather than focusing on concerns about job loss, the long-term benefits should be emphasized—better infrastructure, increased trade, enhanced tourism, and the creation of new employment opportunities.
Kenya stands to gain significantly from this partnership with Adani. The potential for modernization and economic growth is vast, and with a collaborative approach, Adani’s investment can bring transformative benefits to Kenya and its people.
Ms. Vaishali Basu Sharma is an analyst on geopolitical and macroeconomic issues. Email: postvaishali@gmail.com
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