Investment decision-making in Sub-Saharan Africa

Investment decision-making in Sub-Saharan Africa

When considering investment in a foreign country, a sufficient level of rule of law is an important condition for safe investment. At the request of a major actor in the business sector in the Netherlands, HiiL recently prepared brief ‘quick scans’ on the state of rule of law in five countries in Sub-Saharan Africa: South Africa, Zambia, Namibia, Botswana, Tanzania.

The focus of the review and analysis carried out by HiiL was on those aspects and/or dimensions of the rule of law which are of particular importance for investors, such as protection of investors, property rights, level of corruption, the functioning of the judiciary, and enforceability.

Sources reviewed included relevant governance and rule of law indices (e.g. the Rule of Law Index of the World Justice Project, the Bertelsmann Transformation Index, the World Bank’s Doing Business, the Global Competitiveness Index and more) as well as assessments by international organisations. Expert-interviews were held to receive feedback on preliminary findings described in a draft. The final result was a short brief (about 2 pages) per country, indicating the concerned countries’ conduciveness to foreign investment, from a legal perspective.

The client was further provided with tables enabling a comparative overview of selected indicators, and a bibliography of sources used and recommended for further reading. The client provided feedback, confirming that the HiiL Rule of Law Quick Scans are ‘very helpful’ in helping to make the final decisionin which countries to invest.

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Contact: Martin Gramatikov