Reply To: Why is it important to choose a governing law that applies to trade finance transactions?

[Aashiq Rasool]

The following things need to be thought about when choosing the law that will apply.
Common law and civil law are very different in how they work. For example, civil law is more friendly to debtors and has stricter rules about how to take and perfect security. All of these things can affect the types of approach that are common in the trade and forfaiting markets. The important thing to remember here is that there is no one approach to look at legal and regulatory issues because more than 50 countries in Africa have different legal styles. In fact, it’s the exact opposite, and even though many of the issues are familiar to people who are familiar with English and other European laws, it is very important to talk to a lawyer in the jurisdictions that are important to a financing to make sure that all the important issues are noted in time and that the right interpretation is given.