OHADA stands for Organisation pour l’Harmonisation en Afrique du Droit des Affaires (Organisation for the Harmonisation of Business Law in Africa), was established in 1993 and consists currently of 17 member states, primarily in West and Central Africa (Benin, Burkina Faso, Côte d’Ivoire, Guinea, Guinea-Bissau, Mali, Niger, Senegal, Togo, Cameroon, Central African Republic, Chad, Congo (Brazzaville), DR Congo, Equatorial Guinea, Gabon, Comoros).
The primary goal is to provide a unified, modern, and predictable legal framework for doing business across its member states to attract foreign investment and boost economic growth. It has created common rules (i.e. uniform acts of commercial, company, insolvency, arbitration laws) directly applicable in all members states and overriding any conflicting national laws. Thus, e.g. the laws for starting a company (like a SARL or SA) are the same in Benin as they are in 16 other African member countries.
Commercial disputes can be settled through Common Court of Justice and Arbitration (CCJA), OHADA’s supranational supreme court, providing safety for foreign capital.
Hence, OHADA is one of the most successful examples of legal integration in the world. If you are looking to start a business or invest in a country like Senegal or Togo, you don’t need to learn 17 different legal systems. It is enough to understand OHADA’s rules for setting up a company or enforcing a contract and that knowledge applies across other member states.
Do you want to know more about OHADA and doing business and/or investing in Africa? To get important, practical information that can possibly save you lots of time and money, reach out to us at +44 20 3974 1244 or at office@bensonformations.com.
