The stampede to enter the African legal market can benefit both international and local law firms, says Shearman & Sterling's Christophe Asselineau

If you choose to believe the press and law firms' marketing materials, it seems that every law firm with global ambitions, including a few that never had a particular interest or expertise in the region, are now busy conquering the African legal markets and trumpeting their African experience.

The realisation may have hit some partners when watching the last football World Cup that there was a large continent with 54 countries and one billion people where they could record a few billable hours to reach their targets. However, the more obvious reasons for this sudden passion have been reported many times:

- As a continent rich in natural resources, Africa is to satisfy the increasing demands for raw materials from emerging economies.

- Its needs for infrastructure are considerable and require vast amounts of financing.

- Its large population represents a substantial market for consumer goods and services of all kinds, including in heavily regulated sectors such as telecoms or financial services.

- Its average growth rate appears attractive compared to those of other regions, particularly during quasi recession times.

- Last but not least, Africa appears relatively under-lawyered.

The scramble

As a result, it is said that there is currently a 'scramble for Africa' among law firms. This is an interesting idea, since the expression was coined in 1884 to reflect the fact that the race between European powers to secure territories was seen by some, in the words of Thomas Pakenham, author of The Scramble for Africa, to be "as undignified as a scramble for pennies".

However, while it is easy enough to draw comparisons between this current surge of interest and the 19th century race for colonies as a source of lawyer jokes or politically correct comments, not much has yet been said about what this influx of commercial lawyers could contribute to Africa.

Armies of accountants

This situation reminds me of a comment made a few years ago by a Congolese friend while stuck in a traffic jam in Kinshasa that "the United Nations (UN) seemed to think that what the people of the Democratic Republic of Congo needed the most were dozens of white four wheel drives filled with armies of similarly coloured accountants".

This comment was probably unfair on the UN (and on accountants), but it is a sobering warning to any business lawyer who would seek to claim that a surge of Western commercial lawyers is the answer to Africa's problems. Yet even if some dismiss the interest of international business law firms in Africa as purely motivated by greed or yet another form of Western predatory behaviour, there are arguably reasons why this increased activity could be a good thing for the continent.

Better protection of African states' interests

Africa is a continent where governments or state-owned companies are still running many sectors of the economy and where states and national companies resort to using international lawyers only when faced with international arbitration.

A benefit of the increased interaction between business lawyers representing investors and civil servants is the emergence of more experienced state negotiators able to negotiate complex documentation to world standards.

It also encourages governments to increasingly use international lawyers at the negotiation stage. This arguably results in the interests of the host countries being better protected and thus should create fewer reasons for governments to re-open or cancel these contracts. It therefore contributes to the perception of increased legal stability necessary to encourage international investments.

Developing local skills and creating opportunities

As has happened in other regions before, the arrival of international law firms often means an increase in the local standards of lawyering and new opportunities for local practitioners to work with, join, or lead the local offices of these firms. It will also create an opportunity for members of the African diaspora trained in Western law schools and currently working in international law firms to bring back these skills and develop local law firms either independently or as the local arms of global law firms.

In addition, with the increased development and enforcement of anti-corruption legislation, international lawyers will have to put these issues to the fore when transactions risk venturing into such territories. In practical terms it is hoped that this will curb some of these practices.

Efficient pro bono

Many international law firms have extensive pro bono programmes that, while derided by some as another form of advertising, are much welcomed by the people who benefit from them. Without overstating their case, these programmes can make a useful contribution to the development of the rule of law in a number of African countries through training of the judiciary, advocacy programmes or legislation review. The resources that international law firms dedicate to such programmes can be quite considerable and the portion dedicated to Africa will only increase as these firms expand their operations on the continent.

Political scientists and sociologists may debate whether having more lawyers in a country is necessarily conducive to economic development, democracy and a fairer allocation of wealth. We should not expect too much too quickly. We also must recognise that there are quite a few things that Africa can teach international business lawyers. However, let's not underestimate the contribution that these lawyers could make to the development of Africa.

Christophe Asselineau is the partner in charge of project development and finance at Shearman & Sterling's Paris office advising foreign investors and African Governments on projects and corporate transactions.