UK Bribery Act 2010: implications for business in Africa

Abstract

Purpose– This article aims to examine some of the implications of the UK Bribery Act (UKBA) 2010 for business in Africa and reviews the effectiveness of strategies African governments have adopted to prevent bribery. The author proposes the development of a bespoke anti-bribery management system (ABMS) based on empirical research. This would help African institutions overcome some of the challenges associated with enforcing regulatory measures formulated in developed countries.Design/methodology/approach– The paper takes the form of a literature review and commentary.Findings– The UKBA has extra-territorial jurisdiction which empowers UK courts to prosecute cases of bribery committed abroad by UK companies and their associates. The risk of prosecution is likely to affect foreign direct investment and official development aid flows to Africa. However, companies can escape prosecution if they can prove that they have adequate procedures in place to prevent bribery. This raises the question as to whether the legislation shifts the responsibility of fighting bribery to under-resourced overseas business partners and supply chains. While most African governments have adopted robust anti-bribery laws, their enforcement is hampered by weak institutions.Research limitations/implications– Empirical research is required to assess the impact of the legislation over the next five years.Practical implications– African organisations must be sensitised about the consequences of violating the UKBA to ensure they adopt appropriate anti-bribery strategies.Originality/value– This article contributes to literature by exploring the development of evidence based ABMS for African organisations which is currently lacking.