After China, Africa has now become the talk of the day for corporations and their business plans. The growth rates are the highest in the world, with 4.4% for the 5 last years on the whole continent, 4.7% for the Sub-Saharan countries and 5.9% for the countries that we have chosen for our case study. What’s more, the amount of foreign direct investment (FDI) has increased by 19% since 2011, going from $48 billion to $55 billion. Percentage share of total FDI inflows has also increased, from 2.8% to 3.9%, and with an elevated level of economic growth, the African continent is picking up speed. With increasing economic activity, the entire business ecosystem of the Sub-Saharan continent is evolving.
Day One is publishing a study on Navigating the Sub-Saharan Business and Legal Landscape, in which we carry out a case study of the six largest recipients of FDI in 2012: Congo, Dem. Rep. Congo, Ghana, Mozambique, Nigeria and South Africa.
“We have mapped 83 business law firms in these 6 countries, and only 11% out of them were international law firms.”
“There is not one unified approach to Africa. You always have to keep in mind the fact that we’re talking about 54 separate countries and you need to take into account their true needs, and not try to impose your own,” says Olivier Chaduteau, Managing Partner of Day One and director of this study. “We see in our study five major areas which represent huge opportunities, not only for those willing to invest but also for the countries able to improve them: Technology, Health, Education, Infrastructure and Resources, resulting in the African countries finding THEIR solution and not having solutions imposed by the ‘developed world’,” insists Olivier Chaduteau.
Without development of the legal framework, the economy will have great difficulty developing. This is why we have taken extra care to analyze the legal market in the 6 countries studied. In terms of maturity, the legal markets are miles apart: the legal market of Johannesburg is closer to New York than it is to Maputo. “The number of lawyers illustrates this point very well, going from Mozambique – where the private practice of law was forbidden until 1990 – to South Africa, with law firms that were established in the 19th century still present,” says Daniel Vamos-Fecher, the analyst at Day One that conducted the study. “We have mapped 83 business law firms in these 6 countries, and only 11% of them were international law firms. There is thus room for people wanting to seize the opportunities that are present,” he adds .
The survey addresses the following:
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