Archives: Africa

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South Africa Prepares to Further Ease Lockdown Restrictions

On June 17, 2020 South African President Cyril Ramaphosa announced government’s intention to further ease the lockdown restrictions imposed due to COVID-19, allowing more industries to re-open fully under stringent health and safety protocols. This announcement comes two weeks after the government de-escalated the country from Alert Level 4 to Alert Level 3 pursuant to … Continue Reading

South African High Court rules COVID-19 Lockdown Regulations Unconstitutional

Following the declaration of the National State of Disaster on March 15, 2020, a number of regulations have been enacted to contain and minimise the spread of COVID-19 in South Africa. On June 2, 2020, Judge Norman Davis of the South African High Court found the regulations issued in terms of section 27 of the … Continue Reading

South Africa Prepares to Ease Lockdown Restrictions

On May 13, 2020 South African President Cyril Ramaphosa announced the government’s intention to ease restrictions imposed to curb the spread of COVID-19. This announcement comes seven weeks after South Africa first announced a national state of disaster in accordance with the Disaster Management Act, 2002 (Act No. 57 of 2002) (the “Act”). This decision … Continue Reading

South Africa’s Economic Response to the Covid-19 Pandemic (Part II)

On 6 April, 2020, we published an article outlining South Africa’s initial economic response in support of its already ailing economy against the adverse economic effects of the coronavirus pandemic.  Two weeks have passed since we first published that article, and we think it is prudent to provide this follow-up, outlining the latest developments in … Continue Reading

COVID-19: Which South African Businesses Can Continue Operations During the Extended Nation-wide Lockdown?

The Department of Trade, Industry and Competition (the “DITC”) has issued guidelines for companies performing essential services to continue operations during the extended lockdown period, in accordance with the Disaster Management Act, 2002 (Act No. 57 of 2002) (the “Act”).The guidelines provide as follows: Only essential service providers registered in terms of the Companies Act, … Continue Reading

COVID-19: Business Rescue, a Viable Option for South African Companies

As South African businesses are left reeling in the wake of the escalating coronavirus crisis and the imposition of a 35-day lockdown , we look at the implications for South African companies and how those in financial difficulty may find some relief under the Companies Act 71 of 2008 (Companies Act).On Friday, March 27 2020, … Continue Reading

Audio and Key Takeaways Re: Covington’s Ability to Help Respond to the COVID-19 Pandemic in Africa

As a complement to our March 26, 2020 blog “Covington’s Ability to Help Respond to the COVID-19 Pandemic in Africa,” you may access the audio of our briefing call here. Key takeaways from the briefing can be accessed here. With African governments increasingly taking strong actions to impede the spread of the COVID-19 virus, including … Continue Reading

South Africa’s Economic Response to the Covid-19 Pandemic

South Africa did not record the first case of Covid-19 in Africa, but it now has the highest number of reported cases on the continent. Having had the benefit of watching governments respond to the outbreak of the pandemic in Asia, Europe and the United States, President Cyril Ramaphosa on March 15, 2020, with only … Continue Reading

Covington’s Ability to Help Respond to the COVID-19 Pandemic in Africa

 With African governments increasingly taking strong actions to impede the spread of the COVID-19 virus – including in a number of jurisdictions, imposing full lockdowns – we are able to provide assistance to our clients, financial institutions, developmental finance organizations, companies and organizations on the continent. We are available to get on a call at … Continue Reading

Coronavirus: Potential Implications for Africa

The Coronavirus (hereinafter “COVID-19”) is upending lives around the world—equally in developed and developing countries. Some are already affected by the deadly impact of COVID-19 (e.g. China, Italy, and France), while others’ lives have been altered due to efforts taken to “flatten the curve,” to ensure hospital systems are not overrun with patients in need … Continue Reading

The London Metal Exchange Policy on Responsible Sourcing and the Evolving Supply Chain Due Diligence Landscape

In Part 3 of our blog series to honour the UN’s World Human Rights Day, we consider the evolving mineral supply chain due diligence landscape, focusing particularly on the implications of the London Metal Exchange Policy on Responsible Sourcing for the extractive industry. In October 2019, the London Metal Exchange (LME) unveiled a new policy … Continue Reading

Openness is key to Africa’s success in a data-driven world

Shift to a services era While Africa’s trajectory remains full of daunting challenges, there is reason to be optimistic. Ratification of the Continental Free Trade Agreement demonstrates critical collaboration between African leaders, and promises to unlock the region’s potential. Equally important, growing investments in broadband ensure that affordable access to leading technology will accelerate the … Continue Reading

Articulating the Business Case for Investing in Compliance Programs

In our experience, compliance professionals spend a significant amount of time and resources focusing on the “how” – designing, implementing, sustaining, and improving effective compliance programs. This focus is no doubt warranted given recent emphasis by enforcement authorities on the need for corporates to test the effectiveness of their compliance programs. However, we believe it … Continue Reading

Five Key Considerations For Handling Internal Corporate Investigations

Companies today face increasingly complex regulatory frameworks globally and intense levels of corporate scrutiny from government enforcement agencies around the world. As government agencies embrace sophisticated crime-busting technology and the world shrinks through greater inter-agency cooperation, there are more ways than ever for governments to identify misconduct and hold companies to account through criminal prosecutions … Continue Reading

It’s Worse Than You Think

The Syrian Civil War entered a new phase this week, with the US ending its support for the Syrian Democratic Forces (“SDF”) – a political movement of mixed ethnicities and religions organized around the Syrian Kurdish Democratic Union Party and its paramilitaries – in advance of a large-scale Turkish military operation in northeastern Syria. In … Continue Reading

Forests are on Fire: What the UN Climate Action Week Means for Africa

Fires have ravaged Brazil’s Amazon rainforest, burning over 1,330 square miles of tree cover, and placing people, wildlife, and their habitats at risk. Experts warn that further degradation could inhibit the forest’s ability to release oxygen and absorb heat-trapping carbon dioxide—a key function for combatting climate change. The fires in the Amazon have been met … Continue Reading

Zimbabwe: Challenges Persist After Fall of Mugabe

Momentous events in Zimbabwe during the last two years inspired hope among many Zimbabweans that they would experience meaningful political change and sustainable economic growth in their lifetimes. In November 2017, former President Robert Mugabe—who ruled Zimbabwe for nearly 40 years—was ousted in a military coup and his former deputy President Emmerson Mnangagwa was installed … Continue Reading

Beyond The FCPA: New U.S. Regulator Enforcing Against Foreign Corruption

Yet another U.S. regulator is entering the foreign corruption space.  The Commodity Futures Trading Commission is a civil agency that oversees commodity and derivatives markets in the United States.  It enforces the Commodity Exchange Act, a set of statutes that are enforced criminally by the U.S. Department of Justice.  The CFTC has authority to impose … Continue Reading

Top Ten Issues to Watch in Africa in 2019

Africa’s Growth Prospects. Africa’s gross domestic product (GDP) is expected to grow at 3.8 percent in 2019, which is a significant improvement over last year’s regional growth rate of 2.6 percent. Excluding the continent’s largest economies (Angola, Nigeria and South Africa), which are growing collectively at an average of 2.5 percent, the aggregate growth rate … Continue Reading

Vive le Prezida! Madagascar Presidential Elections of 2018

In November and December 2018, Madagascar went through two rounds of presidential elections. These were supposed to pull the country out of its marasmus of irregularly changing leaders that bedeviled its entire 20th century history. In 2001, election results were disputed: victory was claimed both by Didier Ratsiraka, the on-and-off President for the previous quarter … Continue Reading

China in Africa: Recent Developments

In 1998, China announced its “go out” or “go global” policy aimed at encouraging its enterprises to invest overseas. In 2013 this policy was reinforced with China’s introduction of its One Belt, One Road (OBOR) or “Belt & Road” initiative, which seeks to enhance development and trade routes in the region, connecting China with other … Continue Reading

Compliance Risks from Local Content Requirements – Considerations for Doing Business in Africa

Over the last several decades, Foreign Direct Investment (FDI) by multinational companies has become a critical engine of economic growth in Africa, with FDI in the extractive industries particularly significant. A common response by local governments in Africa to increased FDI is “local content” requirements, which are designed to ensure the participation of the local … Continue Reading

Congress takes the lead on U.S.-Africa Policy

While the nation has been transfixed by the confirmation hearings of Judge Brett Kavanaugh for a seat on the Supreme Court, Congress passed significant legislation on Africa that has attracted virtually no attention. On October 3, the Senate passed the Better Utilization of Investments Leading to Development Act, better known as the Build Act. President … Continue Reading
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