African Affairs Committee
Business in Africa Law Project
The City Bar’s African Affairs Committee, through its Business in Africa Subcommittee, has launched a new online resource that focuses on legal, regulatory and policy issues relating to business in Africa. The resource will serve as a repository of original content and recommended reading designed to raise awareness about business in Africa among City Bar members and the wider community.
One impetus for this project is that African economies are becoming stronger and creating new opportunities for business. Economies in Sub-Saharan Africa have grown by an average of 5% in the past six years. In 2010, 10 of the world’s 15 fastest-growing economies were in Africa. Analysts have reported that the rate of return on foreign investment in Africa is higher than in any other developing region, and since 2007, foreign direct investment projects in Africa have increased by 20%. Investment opportunities exist in diverse sectors, including consumer goods, infrastructure development and tourism. Opportunities are not just limited to extractive industries.
Another motivation for this project is that socially responsible private sector investment can result in prosperity for investors and the communities in which they invest. Investment can create jobs for unemployed youth and opportunities for entrepreneurs, develop critical infrastructure, lead to skills transfer, and increase tax revenues for development programs. Lawyers play a role in helping investors comply with a host country’s laws and regulations, thereby minimizing investment risk and maximizing the investment’s contribution to the host country’s rule of law.
The web resource will eventually feature content on a variety of legal and policy issues, from anti-corruption law and regional economic integration to business and human rights standards and the U.S. government's role in facilitating African investment. We hope that you will check back for updates, and if you practice in the field, will consider contributing to the Business in Africa Law Project.
Thank you for reading, and please check back regularly for updated content!
Christina T. Holder
Chair, African Affairs Committee
Original Content
Legal Considerations for Investing in Africa: An Interview with Peter Hansen, Esq. (July 2012)
Peter C. Hansen, whose D.C.-based law practice centers on African business investment, shares practical and legal considerations for doing business in Africa with the City Bar’s African Affairs Committee. Mr. Hansen’s advice to investors: know the local community, and involve it. And for the U.S. Government: facilitate American investment by concluding bilateral investment and tax treaties with Sub-Saharan African States.
Foreign Land Acquisitions in Africa (Tad Bardenwerper, August 2012)
This article provides background on foreign land acquisitions, often referred to as "land grabs": why are such transactions gaining popularity, in what countries are they taking place, and what legal and social risks do they pose? The African Affairs Committee and other City Bar committees are interested in exploring these issues, and would like to develop legal tools to be used in negotiating fair and socially responsible land deals in Africa. Mindful that much work has been done on this issue already, we seek feedback from experts and affected communities on what types of legal tools, training or support would be most useful. Please e-mail the Chair of the African Affairs Committee with your suggestions.
Section 1504 of the Dodd-Frank Act: Implementation and Pending Litigation (Kel Jack, November 2012)
This article provides an introduction to the “Publish what You Pay Section” of the Dodd-Frank Act, which requires publicly-traded oil, gas and mining companies to make annual project-level disclosures of payments made to governments. It covers the response of industry and civil society groups to regulations recently promulgated to implement the law, reporting information for affected companies, and a description of pending legislation to challenge the regulations.
Telecommunications, Media and Technology: A Major Growth Industry in Africa (Lauro Bueno and Christopher R. Clark, December 2012)
This article considers recent growth in the telecommunications, media and technology sectors in African countries and related legal considerations.
Recommended Reading
Working Group on U.S. Investment in Africa: Compendium of Action Plans and Briefing Memoranda
T. Rowe Price, Africa on the Rise
World Bank Group’s Doing Business Report 2012
Ernst & Young, Africa Attractiveness Survey 2012
PricewaterhouseCoopers, 10 Minutes on Investing in Africa
McKinsey & Company, Lions on the Move
The Boston Consulting Group, The African Challengers
Goldman Sachs, Equity Research – Fortnightly Thoughts, Africa’s Turn
Harvard Business School’s Annual Africa Business Conference
Columbia University’s Annual African Economic Forum
AllAfrica Investment and Business RSS Feed
Choforche: A Site on Limited Government, Development and Free markets