Investment Banks in Africa Laws and Regulations
Getting acquainted with the laws and regulations for Africa investment banks
Investment banking in Africa can be tricky because there are no uniform laws and rules for Africa's 47 countries. Investment banks in Africa do not share even share the same languages. Keep in mind, not all African countries use English, the poorer countries can suffer from corruption and there are small, arcane laws and regulations that could trip you up.African investment banking firms have variables specific to each country, it is suggested that you also use banking and legal experts from a particular country to work with you. An investor bank in Africa can look good on paper. Bear in mind:
1. Only some investment banks in Africa laws and regulations are conducive to investment banking.
2. Some investment banks in Africa laws and regulations can look good on paper but in action are not so.
3. Remember to check with US embassies who have a working knowledge about how the laws and regulations are carried out.
Consider that transparency in African investment banks is not the whole picture
Gabon is one of the wealthiest African countries due to foreign investment and its natural resources. Investment banking laws and regulations provide incentives such as free zones, expropriation with compensation and no restrictions as to to what to invest in.
Try: Gabon investment banking rules and regulations conform to the Central African Economic and Monetary Community. Investment banks are overseen by the Central Bank of Gabon and the Ministry of Finance. The US State Department warns that though the laws and regulations here are transparent, they are influenced by outside factors such as lack of accountability and preferential treatment for non-US investors.
Consider investment banks in Africa with high marks from the US
Mauritius's investment banks represent some of the more sophisticated African investment banking companies. The Central Bank of Mauritius has strong risk management laws inspiring investor confidence. Other advantages are no exchange control or withholding taxes for non-residents. Mauritius has double tax treaties and low taxes. The protection of investors is strongly regulated in this country of Africa investment banking.
Try: Invest Mauritius gives the legislation for investment banking in Africa. The Central Bank of Mauritius guidelines and compliance for investment banks can be found on the left side of the screen. The US State Department gives Mauritius high marks in its 2008 investment climate statement.
Look to other African investment banks with rules and regulations conducive to investing
Gambia is an English-speaking African country which in 2001 implemented the free zones act, an act designed to attract and retain foreign investing. In the same year it created an investment promotion act. These acts were created to give guarantees to investors and incentives for investment banking firms in Africa.
Try: Gambia is described as an investment banking haven. There are no restrictions as to how or where investors may invest. Gambia's Central Bank governs by the laws and regulations set out here. Invest in Gambia supplies more information on investment banking rules and regulations, including copies of the two banking acts from 2001.
Look at conditions affecting investment banks in South Africa
South African investment banks have investment banking regulations similar to those in Australia and Canada. There are few restrictions on the extent of foreign investment and all business sectors are open for investment. The South African government and banking community have tamped down on corruption. However, there is a high crime rate which has dampened investment interest.
Try: The Department of Trade and Industry of South Africa lists the laws and regulations concerning South African investment banking, along with a pdf file written for interested investors. Bloomberg.com's analysis of South African investment laws and regulations says they need improvement.
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