African jurisdictions are increasingly the focus of foreign
investors and often use local partner requirements as a policy
tool, as they are eager to ensure that Africans reap the benefits
of increased economic opportunities.
The commodities boom and resource discoveries such as oil off
the coasts of Angola and Ghana and gas reserves in Mozambique,
coupled with increased flows of foreign direct investment in the
years following the financial crisis, have led to unprecedented
growth in many African economies. From a local policy perspective,
the reasons for requiring local partners are thus easy to
understand.
While this has the potential to provide opportunities to the
people of Africa, it can present challenges to foreign
investors.
