Investing in Africa: Key developments shaping the continent’s investment landscape

Set to become the world’s second-fastest-growing region, Africa is entering a new economic cycle that is drawing a significant degree of renewed investor attention.[1] Yet this momentum unfolds within legal and regulatory environments that remain diverse and shaped by complex political and administrative contexts. For companies active in Africa, project outcomes increasingly depend on an ability to interpret these dynamics rather than on macroeconomic promises alone.

It is within this context that we introduce our new "Investing in Africa" series, which will examine the key legal developments shaping Africa’s investment landscape. This first article draws on discussions held during a private forum hosted by Freshfields Paris in October 2025 with counsel and clients who are active across multiple African jurisdictions, whose insights highlight several themes shaping current project structuring and execution—themes we explore below. 

Over the next few months, we will issue jurisdiction-specific articles to provide deeper analysis of regulatory and operational developments shaping investment across Africa. 

In brief

• Africa’s growth is driving sustained demand in energy, infrastructure and transport, while creating new opportunities in digital infrastructure, renewables, agritech and logistics.
• Investor competition is intensifying, with US, Gulf, Indian and BRICS players joining established operators, and States raising expectations on execution capacity, local content and ESG performance.
• Regulatory frameworks continue to evolve, with reforms ranging from liberalisation to increased State participation and value-capture policies, particularly in extractive sectors.
• Administrative practice remains a critical risk factor, with licence revocations, audits, and tax reassessments affecting projects even where legal frameworks are stable.
• Contract structuring and dispute-resolution mechanisms remain central to managing risk, with international arbitration still preferred despite a shifting treaty landscape across the continent.

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Evolving market dynamics 

Africa’s economic landscape is undergoing a profound transformation, driven by demographic growth, accelerating urbanisation and persistent infrastructure needs. These dynamics not only sustain long-standing demand in energy and transport, but also fuel emerging opportunities in digital infrastructure, renewables, agritech and logistics. The result is a more diverse and competitive investment environment, where established players now contend with entrants from the US, Gulf States, India and the broader BRICS bloc—each bringing distinct financing structures, risk appetites and partnership models.

This diversification has prompted States to recalibrate their priorities. While financial terms remain central, tender evaluations increasingly hinge on execution capability, integration of local content and alignment with national development strategies. ESG considerations, in particular, have moved from aspirational policy goals to embedded requirements—now forming mandatory procurement criteria and, on the financing side, measurable components of lenders’ credit assessments. 

Regulatory reform and operating realities

Legal reforms across Africa continue to shape both market entry and long‑term project delivery.

In North Africa, Algeria stands out with one of the region’s most significant changes. The 2025 Mining Law replaces the former 49/51 rule with a 20% domestic shareholding requirement. Coupled with earlier changes to the hydrocarbons framework—particularly revised fiscal terms and clearer contractual structures—these reforms have sparked renewed interest from international sponsors. Morocco has maintained a relatively open investment environment. Its administrative framework is seen as more predictable, and full foreign ownership is generally permitted in most sectors, subject to authorisations. These factors have supported sustained investment in renewables, automotive manufacturing and broader industrial value chains. 

Further south, Mozambique has moved to clarify its investment regime. The adoption of a new Investment Law in 2023, followed by implementing regulations, has consolidated the rules governing foreign investment and access to tax and customs incentives—although structural, political and economic challenges remain. 

South Africa has also seen notable legislative movement with the publication in 2025 of the draft Mineral Resources Development Amendment Bill for public comment. The draft bill proposes amendments to the Mineral and Petroleum Resources Development Act and has generated debate within the sector. Its final form and impact on investment certainty remain to be seen as consultations continue.

Several Sub-Saharan African States (including Botswana, Mali and Cameroon) have amended their mining codes to increase domestic beneficiation, strengthen environmental obligations, and expand State participatory rights in strategic minerals. Similar reforms are underway or under review in a number of other jurisdictions. These reforms align with a broader continental shift aimed at securing greater sovereign value capture from resource development. 

Competition law is also playing a more prominent role across the continent. The Economic Community of West African States (ECOWAS) regional merger control regime, now operational under the ECOWAS Regional Competition Authority, requires certain cross-border mergers and acquisitions to be notified and cleared before implementation, creating an additional procedural step for transactions involving multiple member States. This regional overlay operates alongside national competition frameworks in countries such as Senegal.

Alongside formal legislative change, administrative practice continues to play a decisive role. Licence stability, in particular, remains a particularly sensitive issue. In Guinea and Mali, mining licences have been revoked following reviews of compliance with investment timetables and infrastructure obligations. Senegal has adopted similarly assertive positions in hydrocarbons and fisheries. In Nigeria, the government revoked around 2,000 dormant mineral licences in 2024 and 2025 as part of a broader sector clean-up (amidst wholesale changes to its tax code). Similar measures have been observed in Tanzania, Ghana and Zambia, where authorities have issued default notices to mining licence holders and, in some cases, announced or initiated licence revocations as part of broader sector-review exercises. These actions underscore shifting administrative priorities and demonstrate how changes in policy interpretation—even absent formal legislative changes—can impact long-term project continuity. 

Tax readjustments have also emerged as a significant source of friction. In Gabon, tax audits by public authorities have triggered substantial reassessment notices and led to the suspension of fiscal incentives previously granted under investment agreements. In Côte d’Ivoire, changes introduced by the 2025 Finance Act increased ad valorem mining royalties (including on gold) and have led to broader review and renegotiation of terms with investors. 

Structuring investments 

These dynamics place considerable pressure on contractual frameworks. While most jurisdictions allow for concessions, public-private partnerships and bespoke investment agreements, certain provisions consistently prove decisive in shaping project outcomes:

• Shareholding and transfer provisions. Clearly distinguishing internal group restructurings from genuine third-party transfers is essential. In Côte d’Ivoire and Cameroon, the absence of such distinctions has triggered assertions of termination rights following routine intra‑group reorganisations.
• Foreign-exchange protections. In jurisdictions where central bank approvals are required, delays in accessing or transferring foreign currency can persist for extended periods. Contracts should therefore specify the currency of payment, reference rates, timelines and contingency steps in the event of prolonged convertibility constraints.
• Stabilisation and change-in-law mechanisms. These provisions govern how new fiscal or regulatory measures interact with existing commitments. In energy and infrastructure projects, parties increasingly favour targeted stabilisation (e.g., limited to fiscal and customs regimes) combined with tariff-adjustment or economic‑rebalancing mechanisms, which tend to be more sustainable in today’s political environments. 

Dispute resolution

Arbitration remains the primary mechanism for resolving large commercial and investor-State disputes in Africa. Most major contracts provide for international arbitration, typically seated outside the host State. Enforcement is supported by widespread adherence to the New York Convention and, within OHADA jurisdictions, by the Uniform Arbitration Act.

Nonetheless, practical challenges persist. Courts in certain jurisdictions have asserted jurisdiction notwithstanding the presence of a valid arbitration agreement, creating uncertainty at the outset of proceedings. This has reinforced parties’ preference for foreign seats, with London and Geneva favoured for their neutrality and predictable judicial oversight, and Paris remaining predominant for Francophone Africa disputes. While local arbitral centres are gaining visibility, they remain less frequently chosen for high-value matters. In parallel, mediation and other consensual tools are also becoming more common. 

At the treaty level, the landscape is undergoing significant change. Several African States have withdrawn from bilateral investment treaties or signalled their intention to renegotiate them. Meanwhile, the investment protocol under the African Continental Free Trade Area (AfCFTA) is moving towards more regional, treaty-based solutions—though the precise role of investor–State arbitration within that framework remains to be defined. In the meantime, many legacy BITs remain in force, with the result that arbitration continues to govern most ISDS disputes despite the broader shift toward an expanding regulatory space. Where contractual protections are limited or disputes are not seated outside the host State, the availability and scope of protection under applicable BITs may prove decisive in shaping project outcomes, making treaty planning and structuring a relevant consideration alongside tax structuring at the outset of an investment.

Conclusion

Africa continues to present expanding opportunities in strategic sectors, but these prospects unfold within legal and regulatory environments that balance market liberalisation with increasingly assertive sovereign policy objectives. In this context, contractual architecture and regulatory insight remain critical for long-term project performance. As States refine their frameworks and revisit legacy arrangements, sophisticated structuring and proactive dispute resolution planning will remain central to investment success.

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Our team has advised on some of the largest and most complex matters across Africa, working closely with our StrongerTogether network of leading local firms. Please contact us if you would like to know more.