CLG: Africa Offers Growing Potential for Cross-Border Investment

 

Experts from pan-African legal and advisory firm CLG highlighted Africa’s expanding opportunities for cross-border investment during a workshop at African Energy Week (AEW): Invest in African Energies 2025 on Monday, noting that local expertise and strategic planning are essential for navigating the continent’s regulatory and financial challenges.

“When you go to non-African financiers, they often have a general view that all African countries have a higher risk of doing business, which raises financing costs,” said Adeleke Alao, Director at CLG Nigeria. “But this is not the case. Even within each country, depending on the area, different considerations need to be put in place.”

Daoudou Mohammad, Tax and Legal Director at CLG’s Pointe-Noire office, noted that understanding the nuances within regional blocs is key to unlocking opportunities: “Treating CEMAC as a single country can lead to the underestimation of risk within each country.”

Mohammad highlighted CEMAC’s foreign exchange regulations, saying, “Despite some reforms from the central bank in recent years, foreign exchange remains very restrictive in the Republic of Congo and CEMAC in general… In this situation, we can propose exceptions for critical industries like mining and oil and gas.”

Mauritius was highlighted as a key platform for investing in Africa. “Investors benefit from a network of Investment Promotion and Protection Agreements,” said Prina Jeeha-Teeluck, Managing Partner of CLG Mauritius. She noted that roughly 450 of the 900 investment funds domiciled in Mauritius focus on African private equity, and pointed to Mauritius’ evolution into a middle-income country as evidence of its stable, pro-investment environment.

The session underscored that Africa’s cross-border deals are not without hurdles, but with strategic planning, experienced advisors and targeted investment approaches, the continent offers a dynamic and growing market for investors.

Distributed by APO Group on behalf of African Energy Chamber.