Investment Checklist

Africa Investment – Risk Checklist

Map the Strategy, Know the Process, Follow the Process

Key actions:

First key action

Discussion with the bank of choice in the country of the investment, with the local Treasurer and local head of Corporate Banking (to know banking procedures and the exchange control laws, and how to pay tax)

Second key action

Discussion with Country Centre or Office for the Promotion of Investment (to know the Process)

Third key action

Discussion with the lawyer of choice for company establishment (select from your bank’s panel of lawyers)

Fourth key action

Discussion with your auditor (to know about tax regulations)

Fifth key action

Discussion with the local Ministry owning your target investment sector

From the Treasurer of your bank in your target country enquire on:

1. Existence of exchange controls or limitations on the cross-border payment of money
2. Local rules in relation to transacting with a local customer in US Dollars (for example) as opposed to the local home currency
3. The liquidity in the foreign currency exchange market to enable timeous cross border payments
4. The availability of liquidity in foreign currency markets and products to hedge exposures
5. The availability of financing in the local currency and foreign currency and interest rates applicable
6. Government fees or prescribed bank margins imposed between foreign currency Buying and Selling rates
7. Controls over and withholding taxes on the foreign remittance of interest, fees and dividends
8. The exposure of the economy to prices of a single or few commodities
9. Existence of a well-developed legal and financial system
10. The ability and cost associated with exporting excess inventory from a country if sales do not materialise

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