根据中国对外投资追踪数据，2005年至2018年间，中国对撒哈拉以南非洲国家的投资总额达到了2.99千亿美元。2018年，中国宣布将继续对非洲国家投资600亿美元。我们和律师们聊了聊中国对非投资的热门国家及产业，以及中国企业面临的普遍挑战。
中国政府及企业在非洲的投资故事可以追溯到20世纪80年代。“80年代初，中国对非投资进入了起步阶段。”中伦文德胡百全联营律师事务所主任合伙人林威律师对ALB回顾道，“这一阶段的投资规模较小，每个项目平均投资额约50万美元。”
随之而来的是90年代初的发展阶段。“中国开始将对非洲的援助转化为双边企业间的合资合作。1995年，中国政府改革援外方式，将中非合作的主体从政府转向企业，且由贸易型投资逐渐向资源开发类投资转变。”林律师接着说。
在他看来，以2000年中非合作论坛成立为标志，中国对非投资进入了逐步成熟阶段。这一阶段，建立中非发展基金等新举措不断出台，推动了中国对非洲投资快速增长。林律师例举了几个数据：根据中国海关统计，2019年中国与非洲贸易额达到创纪录的2087亿美元，南非、安哥拉、尼日利亚、埃及、阿尔及利亚连续7年保持前五大贸易伙伴地位。建筑业、制造业、租赁和商务服务业、采矿业、批发零售业则成为中国对非投资前五大行业。
虽然上述发展表明了中国在非影响力的日益增加，但在大成律师事务所非洲区CEO Noor Kapdi看来，中国对非投资依旧处于较早期阶段，尤其和英国与法国相较。“事实上，英法对非直接投资的额度也仍高于中国。” Kapdi说。这之间的差异，可能在于英法在非投资以高利润、资源剥削型项目为主，而中国更多从国家层面辅助非洲的需求及发展策略。
“举例来说，中国并非直接出口非洲的矿产资源，而专注于在当地进行加工。 比如在赞比亚兴建Chambishi多功能经济区和冶炼厂，为当地提供了数千工作机会，及数百万美元冶炼收益。” Kapdi说。
东北非国家吉布提当地CAA律师事务所创始合伙人Mohamed Abayazid则从微观角度，讲述了中国在吉布提这样一个非洲小国的发展故事：吉布提拥有特殊的战略位置，扼守着世界上最繁忙的海运航道之一——曼德海峡，也扮演着非洲第二大经济体埃塞尔比亚的出海口角色。
“如今通过曼德海峡的航船之中，超过三分之一都来自中国，这也是中国如此注重在该地区投资港口、铁路和物流的原因。”Abayazid说。自2000年起，中国在这一地区的影响力明显增长，吉布提近年也被纳入了“一带一路”倡议的沿线国家。
2013年，招商局集团开始与吉布提政府合作开发新港口基建和铁路；如今，吉布提沿岸还铺设有七条中国企业投资的海底光缆。“中国在吉布提及‘非洲之角’地区的此类投资额已超过了100亿美元。” Abayazid说。
主要“玩家”
在过去40年中，活跃于非洲的中国投资者身份也发生了很大变化。
“民营企业已经占据中国对非投资企业数量和金额的70%以上。国企更倾向于在建筑业、采矿业等基础建设和能源领域大显身手； 民企则主要投资于制造业和服务业，并逐渐成为开拓这片市场的主力军。”
--林威，中伦文德胡百全联营律师事务所
如林威律师所指出的，以1995年为线，中国对非投资逐步实现了从“国家支援”向“企业投资”的转变。而参与企业的性质也在变化。“1990到2003年，中国投资非洲的企业大多以大型国有企业为主。”林律师说，“2003年起，越来越多民营企业参与到投资非洲建设。目前，民营企业已经占据中国对非投资企业数量和金额的70%以上。”
中国国企和民企关注的投资领域也不同。“国企更倾向于在建筑业、采矿业等基础建设和能源领域大显身手； 民企则主要投资于制造业和服务业，并逐渐成为开拓这片市场的主力军。”林律师补充说。
而在Kapdi的观察中，近年来活跃于非洲的中国投资者还包括大型投资机构，如高瓴资本、高榕资本、IDG资本、红衫资本、金沙江创投，以及大型科技、互联网及TMT企业，如华为、美团点评、中兴、中国电信、传音、网易。
另一类让人略感“意外”的在非中国投资者则是“大量受海外试水机会驱动的中国创新企业及企业家”，在Kapdi看来，“中国商人将非洲视为了下一场‘商业文艺复兴’的发生地”。
林律师回应了Kapdi的此种观察。在他看来，中国在非兴建的经贸合作区为小企业赴非提供了可能。“截至目前，中国已在非洲建了大概25个经贸合作区。中国对外投资，除大型公司外还有中小企业，这类企业必须借助园区为平台，有相对集中、良好的基础设施和投资环境，为他们提供投资的机会。”
“要想富，先修路”
谈到外国资本在非洲的活动，公众心中不免出现某些刻板印象。在律师们看来，此种印象近年来确有改观，但仍一定程度上反映了对非投资现状，以及非洲国家本身的需求。
“在非投资一直关乎基础建设投资，这一点在过去50年中都没发生变化。”贝克·麦坚时国际律师事务所非洲主席Wildu du Plessis告诉ALB。“非洲各国领导人存在高度共识，必须着眼于解决基建问题，才会不阻碍非洲经济的进一步全球化。这其中就包括通过提升交通和设施基建，减少贸易障碍。”而2018年3月签订的《非洲大陆自由贸易协定》正强调了这方面的合作机会。
“中国有句俗话：‘要想富，先修路。’对非洲来说尤其如此。”Kapdi说，“非洲开发银行计算非洲大陆每年所需最低基建金额为1300-1700亿美元，其中至少50%没有融资渠道。而过去20年中，中国为一系列非洲基建提供了资金，目前中国在能源、矿产、电力、房地产、船舶港口、交通、科技和电信领域，都是对非基建第一大投资方。”
du Plessis指出，2019年非洲开发银行曾宣布2018年非洲基建投资中约250亿来自中国，其中40%投入了能源基建。“中国提供给非洲能源及基建项目的贷款额在2016-2017年间几乎翻了三倍，从30亿美元增长到了88亿美元。政策性借贷者，如国家开发银行和中国进出口银行在此方面尤为活跃。”
“和老生常谈的‘中国在非洲投资矿产和铁路，然后把商品拿回去支持本地生产’模式完全不同。数据明确表明中国贷款正大量向非洲电力项目转移。”du Plessis接着说，“所有国家都需要可靠、能满足需求的电力生产、传输及配电设施。没有这些，发展就不可能实现。因此非洲电力板块成为了接受中国政策性贷款最多的领域。”
在贝克·麦坚时近期参与的一系列大型非洲电力项目中，例如尼日利亚蒙贝拉水电站、肯尼亚拉姆燃煤发电厂、南非Medupi燃煤发电厂项目等，超过一半的资金都来自中国借贷者。
能源基建外，du Plessis指出，近年来中国海外直接投资也加速关注于非洲的建设、生产及金融服务板块。中国企业还支持了撒哈拉以南非洲三大经济区的建设，包括赞比亚-中国经贸合作区、埃塞东方工业园和中国-尼日利亚自由贸易区。“这些投资增加了工作机会，发展了当地工业。”du Plessis说。
多法域挑战
中国投资者在非洲日益增长的胃口必然伴随着律师事务所在交易中的保驾护航。律师们指出，中企在非洲遭遇的第一大“法律加文化”挑战，就是这片大陆所蕴含的“丰富性”。
“在非洲做生意，首先要意识到非洲大陆由54个不同国家组成，每个都有自己独特的文化、社会、政治和商业传统。”kapdi提醒道。
Du Plessis补充说：“非洲不同国家之间可谓千差万别。即便在地理上毗邻，国家间也具备极大差异。”
Abayazid给出了一个生动例子：在中国参与建设的吉布提国际自贸区中并行存在着吉布提法律体系和其他临近国家法律体系，“它们大相径庭，例如吉布提采用的是大陆法系，而肯尼亚是普通法系”。
“中国投资者必须面对众多法律和监管。”du Plessis接着说，“跨境法律合规变得如此复杂，投资者们普遍表示这是他们在非面临的最大商业风险。”
“对投资者来说，跨司法管辖区交易中的沟通有时候也令人崩溃，尤其当不同法域使用着不同术语，投资者往往很难理解不同法域法律顾问发来的千差万别的法律意见。中国投资者不仅希望获得更多信息，也希望能更好协调跨境交易中不同利益方的沟通。”du Plessis说。
面对这种挑战，律所——包括贝克·麦坚时、大成和中伦文德，都指出了律所覆盖全球的分支网络所具备的优势。贝克·麦坚时在非洲拥有超过百名执业律师，大成在非洲的覆盖网则居世界首位，这不但提供了坚实的在地性，也提供了更流畅的跨法域法律服务。
依托合作网络则是另一种解决方法：例如贝克·麦坚时在非洲当地拥有广泛的合作律所网络——其中包括诸多非洲顶级律所；中伦文德则同时依托于Interlaw和GLA两个国际律师联盟，CAA则牵头设立了泛非洲商业律师网络“非洲商业法律专业联盟”（ABLE Network），目前汇聚了14个国家的成员，为客户在相应司法管辖区提供更协调的法律服务。
CAA的Abayazid律师同时从当地律所角度指出，和某家中国律所保持长期合作关系非常有益，这让当地律所能够为中国客户提供稳定、高质量的法律服务。以CAA为例，过去五年中，他们和中国竞天公诚律师事务所郑成海律师带领的团队就一系列重大中国基建投资项目进行合作，取得了很好的效果。
其他挑战
多法域挑战之外，律师们指出中企在非洲遭遇的其他法律挑战主要集中在劳动法、税务、移民、投资法等领域。
“他们面对的困难主要在于非洲不同国家劳动法规在程序及实体规定上的差异。无论进入或退出，这都是中企最需要法律顾问协助的地方。”Kapdi说。
Abayazid则指出，当地严格的劳动法规、严格却又不甚清晰的税务系统、税务及海关部门的繁冗流程，都给中企带来了不小难题。
林威律师则从其他角度补充了中企在非遭遇的法律难题。“首先是关于投资限制的特殊规定，有的非洲国家出于振兴地方经济或促进民族融合等目的，可能在法律上对于外商投资提出特别要求，例如南非在采矿、通信等行业都对最低黑人占股比进行了要求；其次是非洲国家的法律制度很多尚不完善，司法与行政执法等环节可能存在地方保护主义现象，因此法律适用的结果具有较大不确定性。”
他接着说：“第三，非洲东道国出于保护国家主权利益的目的，以法律形式对外国投资准入和规制提出了严格要求，集中体现在资源行业的准入门槛最高、规制最严；最后，很多非洲国家，如埃及、利比亚、津巴布韦等，纷纷制定了有关反不正当竞争和反垄断的法律规定，保护当地国有企业。”
全面服务
对于任何海外投资者来说，到外国做生意也绝不仅关乎商业和法律，他们还要面对陌生环境中诸多文化及社会层面的挑战。
“政治风险、社会及经济不稳定性、较低的政府治理能力、货币风险、复杂监管体系和腐败现象高发，都为中国投资者对非投资制造了障碍。”
- Wildu du Plessis，贝克·麦坚时国际律师事务所
"政治风险、社会及经济不稳定性、较低的政府治理能力、货币风险、复杂监管体系和腐败现象高发，都为中国投资者对非投资制造了障碍。”du Plessis如此总结道。
因此，在Abayazid看来，当地法律顾问不但为中国客户提供法律意见，也会为他们代理与当地政府部门沟通事宜。
“另一方面，在非洲做生意很大程度要依靠良好的关系。因此，我们也帮中国投资者和当地监管者、政府构建良好关系，减少文化、社会和商业层面的隔阂。”Kapdi说。
此种沟通不仅在于“消极”适应，有时也关乎“积极”塑造。如du Plessis所说，“有时当地监管法规也还在制定之中。当中国投资者进入全新或未有管制的业务领域时，他们需要知道如何和当地公共部门互动，如何理解政府的做事方法，以及如何在新监管法规的发展中发挥作用”。
林威律师进一步指出了多国营商环境未见实质改善、语言障碍、医疗卫生风险三点障碍。他介绍说，中伦文德一直注重通过专题讲座等方式，让客户详细了解最新政策并提供建议。
甚至，为了保障客户在交易完成后继续获得商业成功，“一些公司聘任我们担任当地公司的董事，在公司日常经营活动中继续发挥法律顾问角色，保证中国企业在非洲并购后的成功运营。”林律师说。
客户选择
那么，中国企业在为对非投资项目挑选法律顾问时通常遵循哪些标准？
近年，大成曾参与了众多中国对非投资项目。Kapdi借此总结道：“中国投资者希望非洲本地律师熟悉法律，能处理商业和政府关系问题；在相关业务或产业领域具备实力，且价格合理。 ”
“对于中国企业来说，当地律所的声誉、曾为其他中国企业服务的效果是做出选择的重要指标。”
- Mohamed Abayazid，CAA律师事务所
自2013年起，CAA作为吉布提当地法律顾问频繁参与了中国相关项目，包括多拉莱港口融资及建设项目、吉布提国际自贸区相关投资项目等，服务过的中国投资者包括中国城建资源投资和招商局集团。在Abayazid看来，“对于中国企业来说，当地律所的声誉、曾为其他中国企业服务的效果是做出选择的重要指标”。
近年来，中伦文德也代表中国企业参与了一系列在非项目，包括中非投资发展有限公司在阿尔及利亚金矿投资项目的并购重组；某央企在中非共和国石油开发项目；某地产集团在马里金矿投资，以及在约翰内斯堡房地产项目的日常运营；万通集团在刚果（布）Mbamou经济特区开发投资项目；正威国际集团在喀麦隆输油管道合资项目等。
基于过往经验，林律师建议：中国企业可以考虑使用有经验的中国律师团队主导项目落地与实施过程，并由当地律师团队予以配合。“一方面，中国法律顾问能准确理解客户的商业目的和诉求；另一方面，我们对外国律所的服务方式与思维方式非常熟悉。因此，我们能为客户与外国律所之间的有效沟通起到很好的协调和促进作用。”
此外，科技手段也能助力律所提供相关服务。
例如大成提到了其所使用的视频会议、智能文件分享系统、电子信息系统等。“我们在某些交易中还会使用定制科技资源，例如并购交易中利用人工智能软件做尽职调查。”Kapdi说。
“中国投资者期待法律顾问使用最新法律科技工具，帮助他们在非洲快速、高效完成交易。”du Plessis指出，“例如贝克·麦坚时拥有全球网络发现与调查平台，还使用了文件分析工具，这个工具能加快尽调过程，帮助客户从大量文件中获取有洞察力的信息。当项目跨越60甚至70个司法管辖区时——尤其对于拥有如此多不同法律体系的非洲大陆来说，这些工具的作用不必多说。”
未来趋势
谈到对于中国对非投资未来的展望，Kapdi特意提到了2018年中非合作论坛北京峰会的重要性。“北京峰会宣布了中国在今后三年内对非洲的投资承诺。中国的投资信心很强——其将继续对非洲投入600亿美元，但也很谨慎。此外，中国也将自己的身份逐渐从发展支援者变成了发展融资者，希望以市场化手段，而非援助性手段强化竞争和发展。”
林威律师也指出，正是在这次峰会上，中非双方签订了共建更加紧密的中非命运共同体协议，“中非关系已经超越了双边的范畴，走到了构建更加紧密的命运共同体阶段”。
谈到未来中国对非投资热门领域的变化，Kapdi首先提到了数字化技术领域及高科技基建。
“例如‘数字丝绸之路’这样的项目期翼将新兴市场与高科技电信硬件基建设施联系在一起，这在当下非洲经济中占据主流，因为各国政府都在促进实现‘数字化非洲’。”
- Noor Kapdi，大成律师事务所
"过去几年里，非洲科技中心的数量翻了一倍：从2016年的314家增长到了2019年的618家。”Kapdi说，“例如‘数字丝绸之路’这样的项目期翼将新兴市场与高科技电信硬件基建设施联系在一起，这在当下非洲经济中占据主流，因为各国政府都在促进实现‘数字化非洲’。”
另外的机遇在于非洲飞速发展的城市化建设。“有经验的投资者和企业通常专注在非洲的经济发展中心，例如拉各斯。对于投资者来说，这些发展中的城市地区伴随着绝佳的投资机会。”Kapdi接着说。
Abayazid回应了Kapdi的观察。他说，目前中国投资者在吉布提处于调研阶段的项目包括两座机场，以及房地产建设及运营项目，包括建造商业区和商用及民用建筑。“吉布提政府希望借助中国投资，将吉布提建设成为‘红海边的新加坡’。”
律师们提到的其他热门行业还包括：旅游、园艺、银行、电信、房地产、文化及教育、农业、畜牧业及食品加工业。
“我们已经观察到中国民营企业投资领域向电子商务、金融、工业园区等新兴领域延伸；还有一些民营企业以抱团出海的形式带动当地上下游产业协同发展，通过这种形式，在埃塞俄比亚等国的中国民营企业已逐渐形成了行业产业集群。”林威律师补充说。
2020年的新冠疫情也会带来新机会。du Plessis告诉ALB，贝克·麦坚时参与撰写的新报告《“一带一路”未来畅想》（BRI Beyond 2020）显示，新冠疫情的连锁效应正在影响中国在非洲“一带一路”相关活动的性质、步伐和范围。
“报告解释了新冠疫情如何引发‘一带一路’沿线国家对数字化项目兴趣的加强，以及对可持续性，包括劳动力健康等问题的关注。‘一带一路’倡议未来关注领域还可能会增加发展低收入国家的健康保障体系，中国的医疗科技板块也可能在海外寻找到机会。”du Plessis说。
Strengthening Ties
Chinese investments and contracts in sub-Saharan Africa totalled $299 billion from 2005 to 2018, according to the China Investment Global Tracker, and in 2018, China said a further $60 billion would be invested into African nations. We speak to lawyers about what the hot countries and sectors are, and the challenges that Chinese companies face.
China's investment story in Africa can be traced back to the 1980s. "China made its early-stage investments in Africa in the early 1980s. Back then, the investment scale was rather small, with an average investment of approximately $500,000 per project," Lin Wei, partner in charge at P.C.Woo & Zhonglun W.D. tells ALB.
In the early 1990s, this investment expanded. "In addition to offering aid to Africa, China started to facilitate Chinese enterprises in setting up joint ventures with African enterprises. In 1995, the Chinese government reformed its foreign aid approach, encouraging and supporting more Chinese enterprises to play a more important role in China-Africa cooperation, and gradually shifting from trade-based investments to resource development investments," Lin continues.
In his view, the establishment of the China-Africa Cooperation Forum in 2000 indicated that China's investments in Africa had entered a stage of gradual maturity. At this stage, more and more new measures, such as the China-Africa Development Fund, were introduced. Lin cites some data: according to Chinese customs statistics, China-Africa trade volume reached a record of $208.7 billion in 2019, and South Africa, Angola, Nigeria, Egypt, and Algeria have been the top five trading partners of China in Africa for seven consecutive years. Construction, manufacturing, leasing and business services, mining, and wholesale and retail are the top five industries of China's investments in Africa.
But in the eyes of Noor Kapdi, CEO of Dentons Africa, China’s investment in Africa is still in the early stage compared with that of key European economies, such as France and the UK. “In fact, the FDI stocks sourced respectively from the UK and France into Africa are each still larger than that from China. The main difference lies in that Chinese capital is accommodating African demands and development strategies at a national level,” he says.
Kapdi continues: “For example, Projects such as the Chambishi Multi-Facility Economic Zone in Zambia involved a large-scale investment and the potential to generate thousands of local employment opportunities and millions of dollars in local procurement contracts.”
Mohamed Abayazid, founding partner of CAA Law Firm in the Republic of Djibouti, provides a vivid example of his own country. “Djibouti has a unique strategic position as it controls access to the Red Sea and acts as port of Ethiopia, a major regional economic power without a sea front.”
“Today, almost a third of the maritime traffic passing through the Strait of Bab-el-Mandeb is of Chinese origin, this is why consequently the Chinese investments in the field of port and rail infrastructures and logistics have just exceeded $10 billion in the countries of the Horn of Africa region,” he adds.
MAIN PLAYERS
Over the past 40 years, the profiles of active Chinese investors in Africa have also changed greatly.
"More than 70 percent of Chinese investments in Africa are from Chinese private enterprises in terms of the number and the amount. The State-owned enterprises are more interested in infrastructures and energy fields such as construction and mining; while private enterprises mainly invest in manufacturing and service industries, and gradually become the main force exploring this market."
-Lin Wei, P.C.Woo & Zhonglun W.D.
Lin points to 1995 as an important dividing line, when China's investments in Africa started to gradually change from "government foreign aid" to "investments by enterprises". Meanwhile, the identities of Chinese enterprises investing in Africa also changed. "From 1990 to 2003, most Chinese investors in Africa were large State-owned enterprises. More and more Chinese private enterprises participate in the game since 2003. At present, more than 70 percent of Chinese investments in Africa are from Chinese private enterprises in terms of the number and the amount," Lin says.
And Chinese State-owned enterprises and private enterprises focus of different areas of investment. "The State-owned enterprises are more interested in infrastructures and energy fields such as construction and mining; while private enterprises mainly invest in manufacturing and service industries, and gradually become the main force exploring these markets," Lin adds.
According to Kapdi, active Chinese investors also include major investment agencies such as Hillhouse Capital, GaoRong, IDG Capital, Sequoia China and GSR Ventures, as well as TMT and internet heavyweights such as Huawei, ZTE, China Telecom, Meituan-Dianping, Transsion and NetEase.
Another surprising category is “a significant number of Chinese start-ups and entrepreneurs flocking into Africa and driven by the opportunity to test their ambitions outside of their home country.” In Kapdi’s words, “Chinese businesspeople are looking at Africa as something of an entrepreneurial renaissance.”
Lin echoes Kapdi's observations and adds that China's economic and trade cooperation zones in Africa have made it possible for small enterprises to enter. "Up to now, China has built around 25 economic and trade cooperation zones in Africa. Unlike other countries, China's foreign investments usually include both large companies as well as small and medium enterprises, with the later relying heavily on platforms like economic and trade cooperation zones that provide relatively concentrated and well-established infrastructures."
IF YOU WANT TO PROSPER, FIRST BUILD ROADS
People have some fixed ideas or impressions about foreign investment activities in Africa. In the view of lawyers, things have changed in recent years, but those ideas or impressions still reflect to a certain extent the current status of investments in Africa as well as the needs of African countries.
“Investment in Africa has always been a story of infrastructure and that has not changed in 50 years. Among African leaders, there has been a strong consensus that the infrastructure impediment must be addressed so as not to restrict increased trade integration.” Wildu du Plessis, Baker McKenzie’s head of Africa, tells ALB.
Kapdi adds: “If you want to prosper, first build roads - this is a Chinese proverb and particularly relevant in a continent such as Africa. The African Development Bank put the continent’s minimum infrastructure needs at $130 billion to $170 billion per annum. At least 50 percent of that requirement is currently unfunded.”
“Over the past two decades, China has assisted in meeting a number of Africa’s infrastructure financing requirements and is now the single largest financier of African infrastructure in sectors such as energy, mining, power, property and real estate, shipping and ports, transportation and technology and telecommunications,” he continues.
Du Plessis pointed out that in 2018, Africa got around $25 billion infrastructure investment from China and of the overall amount, 40 percent went to energy infrastructure. “This is much more sophisticated outbound lending than the cliché about China investing in African minerals and rail to get commodities to feed manufacturing – the data clearly shows Chinese lending predominantly shifting towards African power projects,” he adds.
Apart from this, in recent years, China’s overseas direct investment has also increasingly focused on Africa’s construction, manufacturing and financial services sectors. “Chinese companies have supported the construction of three major economic zones in sub-Saharan Africa, including Zambia-China Economic and Trade Cooperation Zone, Eastern Industrial Zone in Ethiopia and China-Nigeria free trade zone. Such investments have been helping to create jobs and develop local industry,” du Plessis says.
NOT SPEAKING THE SAME LANGUAGE
The growth of Chinese investments in Africa poses increasing demands for legal services. Chinese enterprises not only have to navigate the law, but also the culture, and both are diverse in a continent o this size.
“When doing business in Africa one must be mindful that the continent is comprised of 54 diverse countries each with its own cultural, social, political and commercial nuances,” Kapdi warns.
Du Plessis echoes his observation: “Investors can never assume one country is the same as any other in Africa. Even if they are geographical neighbours, each country is vastly different to the next.”
Abayazid shares the story of Djibouti International Free Trade Zone as an example. “There is the coexistence of the Djiboutian legal system and those of neighboring within the perimeter of the Free Zone, for example the Djiboutian legal system is of the tradition of the civil law, opposed to the legal system of Kenya which is of the tradition of common law.”
Du Plessis points out the risks: “As a result, cross-border legal compliance has become so complex… Communication in multi-jurisdictional matters and deals can also sometimes be overwhelming, particularly where differing terms are used in different jurisdictions, making it difficult for investors to understand the large volumes of communication coming in from varying advisors.”
Facing this challenge, lawyers point to the advantages of their firms' global networks – Baker McKenzie has more than 100 practicing lawyers in Africa and Dentons has the world's largest coverage network in Africa – which not only lay a solid foundation for providing local services, but also enable the firms to provide smooth cross-jurisdictional legal services.
Another solution is by the help of legal networks. For example, Baker McKenzie has an extensive cooperation network of law firms in Africa, which includes many top-tier African law firms; Zhonglun W&D relies on two legal networks, Interlaw and GLA; and CAA led the establishment of a Pan-African network of business lawyers which is called the African Business & Legal Expertise (ABLE Network).
Abayazid also points out the benefit for a local firm to maintain a long-term cooperative relationship with a Chinese law firm, which allows the local law firm to provide stable and high quality legal services to Chinese clients. Taking CAA as an example, in the past five years, the firm and a team led by Zheng Chenghai, partner of Chinese firm Jingtian & Gongcheng, have worked together on a series of major Chinese infrastructure investment projects and achieved remarkable results.
FULL SERVICE
For any overseas investor, doing business in a foreign country is not only about the business and the law, but also about cultural and social challenges in a new environment.
“There are many challenges facing Chinese investors in Africa, including political risks, social and economic instability. Poor governance, currency risks, complex regulatory systems and high levels of corruption pose hurdles to investors in Africa.”
- Wildu du Plessis, Baker Mckenzie
“There are many challenges facing Chinese investors in Africa, including political risks, social and economic instability. Poor governance, currency risks, complex regulatory systems and high levels of corruption pose hurdles to investors in Africa.” du Plessis concludes.
As a result, for Abayazid, local counsels not only advise and issue legal opinions in the light of local law, but also assist and represent Chinese clients with local public authorities.
Kapdi adds: “Like China, African countries are culturally rich and doing business is all about relationships. We assist clients by leveraging our strong relationships with African regulators and political bodies to assist with breaching the gaps culturally, socially and commercially.”
Sometimes legal counsels could even help clients to play active roles in building local legal systems. “Where Chinese investors enter new or unregulated business models in local markets, they need solutions on how they can interact with the public sector in order to understand the approach taken by local government, as well as act as a stakeholder in the development of new regulations.” Du Plessis says.
In order to ensure that clients continue to achieve business success after the completion of the transactions, "Some companies hire us to serve as directors of local companies and to continue to play the role of legal counsel in the day-to-day business activities of the companies to ensure that Chinese enterprises continue to achieve business success after the completion of the M&A transactions," Lin adds.
CLIENTS’ CHOICES
What standards do Chinese companies generally follow when selecting legal advisers for their investment projects in Africa?
Dentons has participated in a number of investment projects of Chinese enterprises in Africa over the past few years. "Chinese clients require their legal counsels to understand the law and can leverage the relevant business or government relationships; to demonstrate competence in the relevant practice area and/or sector; they also want legal services to be cost savings," Kapdi concludes.
“The reputation and representation criteria of Chinese clients are decisive and are key requirements for a Chinese company when selecting a local law firm.”
- Mohamed Abayazid，CAA Law Firm
For Abayazid, “The reputation and representation criteria of Chinese clients are decisive and are key requirements for a Chinese company when selecting a local law firm.”
Zhonglun W&D also represented Chinese enterprises in their projects in Africa. Based on his past experiences, Lin suggests that a Chinese company should hire a team of experienced Chinese lawyers to lead the projects and use local lawyers as helpers. "On the one hand, Chinese lawyers can accurately understand the client’s business objectives and demands; on the other hand, we are familiar with the services and the ways of thinking of foreign law firms. Therefore, we can effectively coordinate and facilitate the communication between clients and foreign law firms."
In addition, law firms can also utilize technological means to provide related services.
“Dentons leverages various technological resources to cooperate with our clients, such as video conferencing, intelligent file sharing portals, electronic messaging systems and more. We also use bespoke technological resources for specific deals, such as artificial intelligence due diligence software is used in M&A deals),” Kapdi says.
Du Plessis adds: “Baker McKenzie has adopted a global e-discovery and investigations platform and has also employed document analytics tools… Tools such as these can enable the effective implementation of multinational projects spanning 60 or 70 countries at a time at a surprisingly rapid pace – an incredibly useful tool in a continent with so many different legal systems.”
FUTURE TRENDS
Kapdi mentions the importance of the 2018 Beijing Forum on China-Africa Cooperation when talking about future trends. “China’s commitment ($60 billion) remains strong, but cautious. China has shifted from identifying its financial contribution as development assistance to development finance,” he says.
“Projects such as China’s ‘Digital Silk Road’ ambition to link emerging markets with hi-tech telecommunications hardware infrastructure continue to be more relevant than ever in African economies and we see an increased focus in the ‘digitalization of Africa’.”
- Noor Kapdi, Dentons
Speaking of specific highly pursued sectors, Kapdi mentions digital technology and high technology infrastructure. “The number of active tech hubs in Africa has almost doubled over the last couple of years — from 314 in 2016 to 618 in 2019. Projects such as China’s ‘Digital Silk Road’ ambition to link emerging markets with hi-tech telecommunications hardware infrastructure continue to be more relevant than ever in African economies and we see an increased focus in the ‘digitalization of Africa’ by leaders on the continent and their investors.”
Another opportunity lies in Africa’s rapid urbanization. Abayazid tells ALB that he has already seen feasibility plans for two airport projects and construction of a business district and also large-scale commercial and residential buildings.
Even with the COVID-19 pandemic lingering, law firms believe 2020 has a great deal of opportunities. “A new report participated by Baker McKenzie, BRI Beyond 2020, shows that the ripple effects of COVID-19 are affecting the nature, pace and scope of China’s Belt and Road Initiative activity in Africa,” Du Plessis says.
He continues: “The report highlights that one key area of potential for the BRI is in projects focused on strengthening the health systems of low-income countries. China’s MedTech sector may similarly find opportunities abroad.”
To contact the editorial team, please email ALBEditor@thomsonreuters.com.