As African states, businesses, and entrepreneurs continue to take initiatives to broaden and deepen their involvement in the natural resources segment, international participants will discover new opportunities to engage African stakeholders, promote partnerships, and pursue profits—in mutually beneficial terms.
Some of the opportunities for partnership are obvious at first glance: PPPs and joint ventures come to mind. Other opportunities, however, are far more subtle—and potentially more enduring: they're hidden behind local content laws, local use policies, and infrastructure initiatives tangentially related to the extraction of natural resources. Local content and employment requirements may add upfront costs; partnerships and joint ventures carry ongoing transactional costs that would not be present otherwise. But each of these paths to partnership secure the buy-in of leaders and communities to a greater extent than mere extraction. As a result, partners—governments, entrepreneurs, international banks, multinationals, etc.—will partner together to reduce risk and increase rewards over the long term.
Click here to download PDF.
This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
© 2014 White & Case LLP