The Law of Business

Africa, a sprawling and multifaceted continent, harbors a rich tapestry of states, cultures, and ethnicities. Within this diverse tableau, a plurality of legal systems coexists, shaped by Western, Islamic, and traditional laws (each with its own intricate layers of differentiation; in Nigeria alone, an estimated 300 traditional legal systems are recognized).
Legal pluralism intertwines with other two defining features of the African landscape: the ongoing process of continental integration and the persistent pursuit of robust Africa-Europe partnerships. In this context, the recent surge in African activism, exemplified by the establishment of the African Continental Free Trade Area (AfCFTA), and the renewed strategic engagement of the EU and Italy towards Africa, represent not isolated occurrences but rather expressions of a long-standing dynamic. The distinction lies not in the initiatives themselves but in the ambitions and the unique historical context in which they are unfolding, marked by rising Chinese competition and the inherent challenges of global economic integration processes.

Standing as the African Union's (AU) flagship project (but not its only one, as exemplified by the establishment of the African Medicines Agency), the AfCFTA represents the world's largest (potential) free trade area, encompassing 54 African states, a market of 1.3 billion people, and an economic powerhouse worth over $3 trillion. Entering the pilot phase in late 2022 through the Guided Trade Initiative launched by 8 member countries, this initiative holds the promise of boosting intra-African trade by over 50%, with a consequential increase in continental GDP of $450 billion and a positive impact on the living conditions of millions over the next decade. In the realm of Europe-Africa relations, the European Global Gateway for Sub-Saharan Africa and the associated Africa-Europe Investment Package emerge as potential catalysts for change, aiming to mobilize €150 billion in sustainable investments and foster a regulatory environment conducive to socio-economic development. From the Italian perspective, the recently announced "Piano Mattei" represents the most ambitious endeavor, breathing new life into the partnership between Italy and African countries, looking to promote socioeconomic development and Italian exports and investments on the continent.

While these initiatives garner justifiable interest and hold promise for long-term gains, the checkered history of African integration undertakings and EU-Africa partnerships necessitates judicious consideration. The challenges are manifold. On the AfCFTA side, encompassing implementation hurdles, negotiating additional protocols and navigating the recent spate of coups d'état in AU member states are some of them. On the EU front, by contrast, criticisms abound regarding mere rebranding, a lack of transparency, and the ineffectiveness of fostering private sector participation. However, amidst these considerations, it is crucial to preliminarily delve into how the European approach – defined by sweeping action plans and strategies geared towards establishing a legal and regulatory framework aligned with European standards – and the African integration process – which is deeply rooted in a (Europe-style like) multilayered and intricate regulatory structure – can (i) align with the African legal landscape – characterized by profound pluralism, state effectiveness gaps, and the pervasive influence of traditional laws – and (ii) address the actual and perceived risks faced by private operators.

In this regard, the central challenge lies in forging a new arena for engagement between European and African legal paradigms, striking a balance between tangible and readily achievable gains and the long-term goal of fostering (if necessary) pervasive and European-style regulation on the African continent.