Banking on Reform – An African Case Study
The ongoing curatorship of African Bank has perhaps arisen at a fitting time, when what was historically feverishly slow and sparse insolvency reform across the African continent may just be showing signs of
awakening (the recent enactment of the new Insolvency Act 2015 in Kenya and introduction of Chapter 6 Business Rescue proceedings into the new Companies Act in South Africa being but two examples of this).
The often stark contrast between local practices (which can vary greatly across the African continent’s different jurisdictions) and that which is more closely aligned toward international regimes (UNCITRAL model law and
cross border insolvency regimes being of relevance here) remains a key challenge.
As investors seek to capitalise on growth opportunities across Africa (but at the same time view the risk of insolvency and a lack of clarity over insolvency outcomes and or workout mechanisms available to them as key
impediments), never so more than today has insolvency reform and transparency been more pertinent, for both local and foreign stakeholders alike.