How Ohada reforms will transform Africa investment

Author: Gemma Varriale | Published: 23 Apr 2014

Revised legislation in sub-Saharan Africa that is set to transform private equity investment in the area will become effective next week.

The Uniform Act on Commercial Companies and Economic Interests (R-UAC) is due to come into force throughout the 17 countries that form the Organisation for Harmonisation of Business Law in Africa (Ohada) region on May 5.

The changes come as interest from international investors in Africa is surging to new highs. According to the World Bank, global gross domestic product in Sub-Saharan Africa soared to $1.29 trillion in 2012. The International Monetary Fund forecasts that the continent’s growth rate will reach six per cent in 2014.

"This latest change in the Ohada act is going to mean there are more flexible vehicles for this fresh money which is earmarked to find...