Business Law In Africa Research Articles

Toward an Elaboration of a More Pluralistic Legal Landscape for Developing West African Countries: Organization for the Harmonization of Business Law in Africa (OHADA) and Law and Development

AbstractIn Europe and especially in France, the African business law landscape, as well as the legal discourse, for developing West African countries is almost exclusively dedicated to OHADA, the Organization for the Harmonization of Business Law in Africa, created in 1993. While economic development in the Member States is the obvious underlying reason for the modernization and unification of African business law, the exact nature of such development remains uncertain, as does the manner in which a such result can or will be achieved. OHADA’s Uniform Acts are, with some minor exceptions, a carbon copy of French business law. The only goal is to increase international investment, which, in turn, is expected to generate economic development, but all without taking any notice of equality or social justice issues. That, without a doubt, is the reason why OHADA is constantly criticized as a law that benefits foreign investors, while remaining ineffective, even illusory, for local traders. To go beyond the criticism, the authors have decided to focus on the relationship between law and the informal sector and to draw lines between formal and informal rules in the business sector.

Le Règlement de Procédure de la Cour Commune de Justice et D’Arbitrage de L’Ohada Fait Peau Neuve

After fifteen years of implementation, the Rules of Procedure of the Common Court of Justice and Arbitration (CCJA) of OHADA (Organization for the Harmonization of Business Law in Africa) were amended on 30 January 2014. These amendments concerned both the internal organisation of the Court and its composition. The most important innovations improve access to the highest community court and streamline the course of proceedings. As such, the following improvements are of particular interest: abandonment of the obligation to elect domicile in the town where the seat of the Court is located; introduction of the possibility to serve Court processes through internet; adoption of new provisions permitting the Court to sanction the parties’ failure to carry out due diligence; and the conduct of court proceedings in several languages. Although some shortcomings remain, it must be noted that the amended law is an important step in the direction of enhancing legal security within OHADA Member States; it also paves the way for a substantial improvement of the CCJA’s performance.

IFRS adoption and the opinion of OHADA accountants

With market globalisation and the adoption of international financial reporting standards (IFRSs) by more and more countries worldwide, it seems appropriate to investigate the level of IFRS knowledge among African accountants working in countries belonging to the Organization for the Harmonization of Business Law in Africa (OHADA). It is also important to determine how they feel about the relevance of IFRSs in Africa. This study is a seminal step towards any level of IFRS adoption by African standards setters and companies. The results indicate that participants appear to have fairly good knowledge of IFRSs and are in favour of applying them for listed companies, but not for all businesses. These results may be of interest to OHADA and will provide data for future decisions about the evolution of accounting standards in OHADA member countries.

Development of a Uniform Insolvency Law in SADC: Lessons from OHADA

AbstractThis article argues that, with the global or cross-border nature of many corporate activities, there is an increasing need for a uniform insolvency law approach to the financial distress of a corporation in the Southern African Development Community. In doing so, the article highlights lessons the community may learn from the Insolvency Act of the Organisation for the Harmonization of Business Law in Africa. Emphasis is given to that organization's success in developing a uniform insolvency act (ie one which is directly applicable in its contracting states). The article also proposes a number of recommendations.

Investment Protection in the Framework of the Treaty of Harmonizing Business Law in Africa (OHADA)

A few years ago, African contribution of the world trade was only around 2%. The investors, except those who are exploiting natural resources, never want to dare dispensing their fund in Africa. The reason of this situation was very simple. The majority of investors denounce the juridical insecurity and also the political preponderance across the African continent. With human and natural resources abundant, Africa is regarded as a continent equipped with a great potential of development. The years of independences in Africa saw being born in many States, of the organizations trying to solve these difficulties and to reinforce their capacities by the constitution of international organizations acting in all the fields. But it is only in the year 1990; some organizations appeared in the continent and knew of real rise thanks to the liberal and democratic economic policies. This article wishes to present an assessment of seventeen years implementation of the African Harmonization of Business Law Treaty of 1993. Firstly, it will describe the system from an institutional point of view and hence from a normative point of view. Secondly, during the course of this essay, there will be a focus on analysis of OHADA’s laws, its system and its potential impact. In addition, the article will concentrate on OHADA’s appropriateness in the business sector and necessary guarantees it must offer for a successful investment partnership with foreign investment.

Political Economy of the Harmonisation of Business Law in Africa

This paper examines the current dynamics of regulatory reforms in Africa and its implication on the continent. It analyses the highly political struggle for regulatory dominance of business law in Africa and how this interacts with the preferences and power of select international actors. It illustrates that the struggle between Francophone and Anglo-Saxon sections of society for OHADA to reflect their ideological stance is having a negative effect on the harmonisation process.

A Comparative Study of Contract Formation and Breach of Contract and Liability in China and Ohada (Note 1) Space Contract Laws

Chinese politicians and businessmen and their African counterparts are improving economic and commercial relations between them. This manifest interest of partnership needs a legal framework which guarantees equal and fair advantages to both parties. To reach this global aim, China and Africa must develop their collaboration in the domain of law. In the 80s China has adopted laws to reflect the country's economic and social demands such as Economic Contract Law (1981), Foreign Economic Contract Law (1985), General Principles of Civil Law (1987). Now, to better facilitate economic growth the National People's Congress (NPC) has unified China's various national specialized contract laws to obtain the “Uniform” Contract Law 1999. OHADA is a system that aims the harmonization of business law in Africa. This study aims to compare the two systems contract formation, breach of contract and liability for breach in order to have a legal frame more appropriate for business between China and this part of African Continent.

The impact of the new OHADA accounting system on the judgments and decisions of Cameroonian bankers

Abstract Cameroon and 15 other African States belonging to the Organization for the Harmonization of Business Law in Africa (OHADA) adopted the Uniform Act Organizing and Harmonizing Undertakings' Accounting Systems on March 23, 2000, which scuttled the OCAM accounting plan in favor of the new OHADA accounting system (SYSCOHADA). Companies were required to adopt SYSCOHADA for company accounts and consolidated accounts beginning on January 1, 2001, and January 1, 2002, respectively. The goal of this study is to compare the impact of the presentation format and informational content of both accounting systems on the judgments and decisions of bankers, and, more specifically, to find out whether the information contributed by SYSCOHADA has changed the judgments and decisions bankers made under the old OCAM accounting plan. To that effect, a field experiment was conducted with Cameroonian bankers using a within-subjects design. Significant differences were noted in bankers' underlying judgments (operating income, net income, cash flow, leverage, liquidity, and ability to raise capital) as well as in their initial judgments about profitability and financial structure. Conversely, no significant differences were noted with respect to other judgments and decisions, i.e. principal judgments about the overall risk rating and overall risk trend, the loan decision, and the interest rate to charge (risk premium). Further, the new statement of sources and applications of funds (SSAF) influenced their underlying judgments about operating income, leverage, liquidity, and ability to raise capital, as well as their initial judgments about financial structure.

The Harmonization of Business Law in Africa: Is Article 42 of the OHADA Treaty a Problem?

AbstractThe primary function of the Organization for the Harmonization of Business Law in Africa (OHADA) is to modernize and harmonize the business laws of member states. The wider objective of OHADA is to attract foreign investment into the OHADA zone and to achieve economic integration in Africa as whole, as other African countries join OHADA. However, article 42 of the treaty establishing OHADA stipulates that French is the working language of the organization. This paper argues that this provision does not facilitate the goal of economic integration in Africa and that in one member state, Cameroon, article 42 presents serious constitutional and human rights difficulties. The paper suggests that article 42 should be amended in order to make it easier for key OHADA objectives to be attained and in order to remove the serious problems created in Cameroon.

The Harmonisation of Contract Law Within Ohada- Colloquium organised by the International Institute for the Unification of Private Law (UNIDROIT) and the Training and Research Department (UFR) of Legal and Political Science of the University of Ouagadougou in association with the Organisation for the Harmonisation of Business Law in Africa (OHADA), under the high patronage of the Ministry of Justice

The Harmonisation of Contract Law Within Ohada- Colloquium organised by the International Institute for the Unification of Private Law (UNIDROIT) and the Training and Research Department (UFR) of Legal and Political Science of the University of Ouagadougou in association with the Organisation for the Harmonisation of Business Law in Africa (OHADA), under the high patronage of the Ministry of Justice

The Social Dimension of Regional Integration in ECOWAS

Regional economic integration arrangements have their own purpose, legal framework, institutional set-up, history, and trajectory, and this paper aims to study these factors in relation to the Economic Community of West African States (ECOWAS). When dealing with regional integration, it is important to consider governance, trade liberalization, and its social impact. The paper focuses on the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA) to analyze labour law harmonization, poverty reduction strategies for development, gender empowerment, and democratic participation. Suggestions to strengthen socio-economic development include promoting social dialogue and how the International Labour Organization and other institutions' can help with better integration in Western Africa. Ultimately, identifying and understanding the unique economic integration arrangements of certain communities can help develop their paths towards a fairer globalization for all.

Convergence of governance systems in SADEC: the OHADA and COMESA examples: chronicle

Extracted from text ... JJ Henning, Dean of the Faculty of Law and Professor of Mercantile Law, University of the Free State, Bloemfontein. Kronieke / Chronicles Convergence of governance systems in SADEC: the OHADA and COMESA examples* 1. Introduction The question that this title poses is: how is the convergence the governance systems of business activities in the various member states of SADEC best effected? In order to some throw light on this question with a view to possible strategies a closer look will be taken briefly at both the OHADA (Organisation for the Harmonisation of Business Law in Africa) treaty which deals ..