Joint Ventures in Sub-Saharan Africa: A New FCPA Minefield

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A Joint Venture (JV) business relationship sometimes appears deceivingly simple when it is seen as merely a contract between at least two parties that choose to embark on a project together. JVs, however, take on a complex posture, if they are the chosen method of entry into Sub-Saharan Africa (SSA) by foreign multi-national or corporate business entities. SSA is one of the only regions in the world, which U.S. companies have barely explored and do not quite understand. In fact, of all the continents, Africa is said to be the most fascinating and promising; but she also poses the greatest challenges. With twenty percent (20%) of the world’s total landmass, a population of nearly one billion (14% of world total), and a plethora of mineral resources, SSA countries have long generated some of the highest returns on deployed capital.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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