An Innovative form of integration: OHADA Investment Policy Global Workshop, Vienna, May 14, 2012...

An Innovative form of integration: OHADA

Investment Policy Global Workshop, Vienna, May 14, 2012

Xavier Forneris, Investment Climate Department

THE WORLD BANKWorld Bank Group Multilateral Investment Guarantee Agency

Comoros

CongoCentral African Republic

Chad

NigerBurkina Faso

Mali

Senegal

Guinée Bissau

Guinea

Côte d'Ivoire

Togo Benin

Cameroon

Equatorial GuineaGabon

OHADA: Organization for the Harmonization of Business Law in Africa

+ DRC (?)

Created by Treaty of Port-Louis, 17 October 1993


OHADA – HARMONIZATION OF COMMERCIAL LAW

3

Rationale & Strategic Objectives:

« OHADA is a legal tool conceived and realized by Africa to promote economic integration and growth »

Kéba MBAYE, Founding father of OHADA

Facilitate Trade and Investment both between member countries as well as with countries outside the region

Respond to investors’ concerns: legal uncertainty and lack of reliability of the judicial systems in member countries A major brake on private investment

Create a “single legal space” among African countries (open to any member of the African Union, not just francophone countries)


OHADA – REGIONAL INSTITUTIONS

4

COUNCIL OF MINISTERS

(JUSTICE & FINANCE)

THE PERMANENT SECRETARIAT

(Cameroon)

THE COMMON COURT OF

JUSTICE AND ARBITRATION

(Ivory Coast)

THE REGIONAL TRAINING CENTREFOR MAGISTRATES (ERSUMA)

(Benin)


OHADA – HARMONIZATION OF COMMERCIAL LAW

5

HOW OHADA AND MEMBER COUNTRIES WENT ABOUT FULFILLING THESE AMBITIOUS OBJECTIVES:

The 16 member countries decided to “unify” their commercial law framework.

Under OHADA Treaty, the Uniform Laws adopted by the OHADA Council of Ministers (through a participatory process) become domestic law.

Immediately and directly applicable. No need for implementing legislation (more advanced form of integration than EU harmonization).


ACHIEVEMENTS : LAWS ADOPTED

6

9 Actes uniformes directement applicables dans les Etats-membres

9 Uniform Acts (laws) directly applicable in member states

Droit Commercial Général General Commercial Law

Droit des Sociétés Company Law

Droit des Sûretés Secured Transactions

Droit des Procédures Collectives (faillite) Insolvency Law

Droit de l’Arbitrage Arbitration Law

Droit des Procédures de Recouvrement Debt Recovery and Enforcement Law

Droit Comptable Accounting Law

Droit du transport de marchandises par route Law on Transport of Goods by Road

Droit des Sociétés Coopératives Cooperatives Law

Registres du Commerce et du Crédit MobilierRegistries for Companies and Secured Transactions

Regional, National, Local


OHADA – IFC ADVISORY PROGRAM

7

Support the effectiveness of OHADA by:

• Providing TA to OHADA Secretariat for the review and reform of the Laws already in force (never amended since adoption)

• Helping modernize and implement the Regional Registry (RCCM)

• Providing capacity-building and strategic advice to OHADA Secretariat

• Facilitating consensus-building and consultation of local and regional stakeholders.


OHADA - IFC PROGRAM

8

• Major breakthrough: in December 2010, with support of IFC Program, OHADA Council of Ministers adopted:

Revised OHADA General Commercial Law

Revised Secured Transactions Law

3 Decrees on the computerization of the Registries for Companies and Secured Transactions

Modernization of secured transactions regime to facilitate access to credit for the local private sector in OHADA zone

Streamlined formalities for business registration and operation

New “entreprenant” status for micro/small businesses to encourage informal entrepreneurs to join the formal economy.

• Next: WBG will support implementation by member States.


OHADA : CURRENT ACTIVITIES

9

• Currently supporting the drafting of amendments on two high-priority Laws (based on thorough diagnostic):

Company Law

Insolvency Law

• Technical work finished. Drafts under review by OHADA States.

• Target: for adoption by OHADA Council of Ministers in July 2012 (Comp.) and December 2012 (Insolv.).


OHADA – Reform of the Company Law

Examples of measures proposed:

Setting-up the company: Make recourse to notary (notaire) optional

and not mandatory for the founder(s).

SARL (LLC): reduce the amount of mininum capital required from

founders from 1 million CFA to 100.000 CFA (= from $2,000 to

$200).

New form of joint-stock company: the Societe par Action Simplifiee

(SAS)

10


OHADA – Reform of the Company Law Changes In Corporate Governance

Objectives: bring the OHADA Company Law up to best international practices in the area of Corporate governance through :

Clearer definition of the stakeholders and their roles

Improved governance of the Board of Directors

Reduced risk of conflicts of interest

Increased transparency and accountability

Strengthened Shareholders’ Rights

Higher standards for public (= listed) companies

11


OHADA Reforms – Main lessons learnt Principaux enseignements des réformes OHADA

12

Achieving consensus between several countries around uniform laws that are directly applicable requires strong political will, patience, capacity-building and access to best practices.

La recherche du consensus entre plusieurs Etats pour adopter (ou reviser) des lois uniformes directement applicables implique une forte volonte politique, de la patience, un renforcement des capacites, et un acces aux meilleures pratiques internationales.

OHADA Law is becoming a reference in Africa and around the world for its innovative and evolving features.

Le Droit OHADA est en phase de devenir un droit de référence mondiale par son côté dynamique, novateur et évolutif


CONCLUSION

13

The form of harmonization that OHADA States have chosen may not work or be accepted everywhere. We provide assistance to OHADA in improving its effectiveness and in modernizing its legal framework but we are not trying to “export” this model of integration. If another region has a different type of integration, different legal instruments, we adapt our assistance (e.g, EAC Program).

La forme d’harmonisation que les Etats OHADA ont choisi de suivre peut ne pas fonctionner ou etre acceptée partout. Nous fournissons une assistance technique a l’OHADA pour améliorer son efficacité, moderniser ce droit mais nous n’avons pas pour mandat « d’exporter » ce modèle. Si une région a un type d’integration et des instruments juridiques différents, nous adoptons alors notre assistance pour l’aider (ex: Programme EAC)

An Innovative form of integration: OHADA Investment Policy Global Workshop, Vienna, May 14, 2012...

Documents

Transcript of An Innovative form of integration: OHADA Investment Policy Global Workshop, Vienna, May 14, 2012...