The Evolution of the African Union Private Business Structure

Abstract

To facilitate the implementation of the African Continental Free Trade Agreement (AfCFTA), and the implementation of the Convention on Cross-border Cooperation (Niamey Convention), harmonisation of private business structures in the African Union (AU) should be prioritised. This analysis considers whether it is feasible for Africa to achieve continental harmonisation of private business registration procedures in line with existing AU regulations. The current challenges in harmonising business registration include the difficulty of doing business, the number of processes involved in registering a business, type of processes required and involvement of third-party professionals. Eight jurisdictions in Sub-Saharan Africa and the MENA region are compared, based on recent secondary data from the World Bank Doing Business 2020 report. The discussion proceeds to explore reform initiatives of UNCITRAL Working Group I on Micro, Small and Medium-sized Enterprise reforms regarding its Draft Model Law, Draft Legislative Guide, and Best Practices in Business Registration. In conclusion, a tailor-made Business Registration Agreement under AU law to harmonise private business registration procedures for African businesses is recommended. The Business Registration Agreement, following the recommendations of the Niamey Convention 2014 and the AfCFTA Trade in Services Protocol, will serve as a driving force for Africa to achieve Agenda 2063 vision of inclusive economic growth and development.