A new agreement among 16 West and Central African nations will benefit the business practices of western mining companies operating in the region, according to Price Waterhouse.
The Organization for the Harmonization of Business Rights in Africa (OHADA) is an agreement among such mineral-producing nations as Burkina Faso, Guinea, Central African Republic, Ivory Coast, to equalize the disparate laws and regulations that govern business in those countries.
“Business law in these nations will be more visible, easier to understand [and] consistent,” says Stephane Brabant, a lawyer with Price Waterhouse. He adds that the organization will remove many business-related barriers, providing greater certainty for investors.
Although mining firms must continue to abide by the mining code of the country in which they work, such business practices as accounting, bankruptcy proceedings, debt collection, discharge of liabilities and arbitration will become less cumbersome throughout West and Central Africa, thereby decreasing operational costs.
Brabant adds that the full impact of OHADA will be felt when metal prices return to traditional levels and mining firms take a renewed interest in the geological potential of West and Central Africa.
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