Key Considerations of Establishing a Commercial Venture in Africa
Maisón Legal
We are a full service multi-specialisation corporate and commercial law firm in Lagos State, Nigeria.
Exploring the Legal Aspects and Challenges of Setting up A Commercial Venture in Africa
The purpose of this Newsletter is to provide knowledge and insight on the key considerations for navigating the complex terrain of doing business successfully in Africa. With the myriads of challenges and risks associated with Africa as a continent, establishing a sustainable and profitable commercial venture must be founded on a strong legal base.
We explore about eighteen (18) key considerations, legal aspects and challenges of establishing a commercial venture in Africa.?
Key Considerations
Being a Continent of about (54) countries with diverse opportunities, strengths and limitations, potential investors need to acquire basic information on the following points, in order for them to make a well- informed investment decision.
(a) Basic Country Information: A general understanding of the terrain in which an investor intends to do business is fundamental. Basic country information to be obtained includes the population size, demography, how it sits within the African continent, major exKey Considerations
Being a Continent of about (54) countries with diverse opportunities, strengths and limitations, potential investors need to acquire basic information on the following points, in order for them to make a well- informed investment decision.
(a) Basic Country Information: A general understanding of the terrain in which an investor intends toports and imports, strategic geographical position, its infrastructure, natural resources, major imports and exports, the official language, and currency.
(b) Key economic indicators: Information on the key economic indicators is necessary to reveal where the economy of the country is heading to, as this can greatly impact the viability or otherwise of the business. Tracking key economic indicators will enable investors prepare, plan, and make better decisions. Such information includes the Gross Domestic Product (GDP), GDP growth rate, inflation, external debt, foreign exchange rates etc.
(c)? Political System: The system of government that the country operates is fundamental in structuring the affairs of the business. Some forms of government tend to be more favorable to free trade and entrepreneurship than others.
The common systems of government in African countries include the presidential system of government practiced in Nigeria and Cote D’Ivoire, semi-presidential system of government as practiced in Burkina Faso, constitutional monarchy as practiced in Swaziland, multi-party democracy, constitutional democracy etc.