As the world’s largest continent, Africa covers 20% of global land area and 16% of the global population – currently 1.27 billion people, according to the latest United Nations estimates. By 2050, the addition of a further 1.3 billion Africans will be greater than the population growth in the rest of the world combined, pushing the continent’s total numbers above 2.6 billion citizens. In what is termed the biggest human transformation of our age, that figure is projected to reach four billion by the end of the century.
Accordingly, the infrastructure challenge is immense and some law firms are more alert than others to the long-term growth opportunities. Those with a short-term perspective see only problems: weak commodity prices, underdeveloped legal systems, corruption, currency issues and unstable or unreliable political regimes. They also focus on Africa’s still-modest aggregate GDP of $2.19trn (2016) – less than France – and compared with $1.6trn (2010), a slight decline in percentage terms over six years from 3% to 2.9% of the global total. Continue reading “Laying the foundations – lawyers scramble as demand for African infra booms”
Given the fall in commodities prices in 2016, the spotlight has turned on the long-term sustainability of Africa for international law firms. Have the global players hedged their bets enough?
‘There is no African law firm that does infrastructure the way we do; it’s front and centre of our strategy. There is a real gap in the market for a sector-based law firm.’
Continue reading “The right platform – trying to find a long-term approach for Africa”
With economic strife putting pressure on Africa’s foreign investments, effective dispute resolution mechanisms are vital. We teamed up with Simmons & Simmons to ask general counsel their experiences of disputes on the continent
As we reported in our dispute resolution Insight ‘Clause and effect’ last year, Africa has become a disputes hotspot. With a fall in commodities prices leading to abandoned projects, disputes work is becoming even more plentiful.
Continue reading “‘Do we believe in Africa?’”
Africa’s economic transformation has made it a key target for globe-trotting private equity houses. Can the continent pay out for the lengthening queue of investors?
For the private equity (PE) community, where risk and return are uneasy bedfellows, Africa represents less of a gamble. Given the continent’s increasing political stability and steady economic growth, the stakes are becoming stacked progressively in the sponsors’ favour. Not so long ago, investors’ bets were as safe as buying a handful of lottery tickets.
Continue reading “A safe bet – charting the rise of private equity in Africa”
With a huge infra deficit and investment flooding in, Legal Business assesses the bellwether projects – and their advisers – defining Africa’s infrastructure market.
In August this year, President Obama hosted the largest US-Africa leaders’ summit ever, with the heads of nearly every African nation gathering in Washington DC. As well as working on governance and leadership issues, Obama talked to a business forum hosted in the Mandarin Oriental, with 90 US firms and over 100 major African companies attending, in an attempt to broker deals and build relationships across the Atlantic.
Continue reading “Constructing continents – the clients and advisers targeting Africa’s booming infra market”
The dynamics of the fast-changing continent are rapidly shifting. As sub-Saharan states challenge South Africa’s regional dominance, Legal Business asks what the much-touted market will look like five years from now
‘I’m standing saying that those who miss the boat now, will miss it forever. So if you want to be in Africa, think about investing,’ said Nigerian finance minister, Ngozi Okonjo-Iweala, earlier this year in a public speech.
Before most foreigners had become bullish on Africa, Stephen Jennings, founder of Renaissance Capital, who successfully bet on the opportunities in post-Soviet Russia, put it more pithily when he was quoted in 2007 as saying: ‘If Russia was a once-in-a-lifetime opportunity, sub-Saharan Africa is a second once-in-a-lifetime opportunity.’
Continue reading “‘We own the time’ – the Africa 2020 vision”
As foreign firms continue to pile into the continent, LB highlights the most attractive methods of accessing the pan-African market
Recently it seems that not a week goes by without new clamour surrounding another legal market as law firms race to enter countries in Asia, Africa and Latin America. But of all the new frontiers that have been gaining favour with law firms, Africa’s focal points are the most difficult to pinpoint.
Continue reading “Africa: into Africa”
As Africa’s emerging economies continue to lure investors, a new legal geography is evolving to accommodate increasing cross-border traffic. LB reports.
The ties between Europe and its former colonial African countries have evolved dramatically since the Age of Discovery but strong geopolitical relationships remain.
Continue reading “Race for Africa”
For much of its recent history Angola has been torn apart by civil war. With considerable oil wealth the country is slowly opening up to foreign investment and a growing band of foreign law firms
Everything seems to conspire to prevent all but the most adventurous and patient of investors from entering Angola. A room at the ‘four star’ Tropico hotel, a 1970s’ block in downtown Luanda, will set you back $500 a night. Once checked in expect to pay $10 for a two-litre bottle of drinking water, $6 for a beer and $20 for a sandwich. It’s not surprising that the capital Luanda is now one of the most expensive cities in the world. Working in Angola requires not only deep pockets but also patience and preferably a bit of Portuguese. Yet investors and their lawyers remain unperturbed, lured into oil-rich Angola by double-digit growth rates and growing investment opportunities.
Continue reading “The right track”