Seminar | UK

Southern African Braai - Wednesday 11 June
Wednesday 11th June 2008
at 10 Queen Street Place, London, EC4R 1BE

As the West faces an ever challenging economic environment, Africa is experiencing significant growth and the continent is seeing increased inward investment as well as outward investment into Europe and abroad.  With its rapid growth, the African continent is emerging as the next “frontier” for European, US and BRIC investors.  

In South Africa, foreign direct investment and private equity were key drivers of merger and acquisition activity in 2007. In aggregate, approximately US$16 billion worth of such transactions were completed, an increase of 51.5% on 2006. The size and range of notable transactions shows the extent of the interest in the region, and include Bain Capital’s US$3.5 billion takeover of Edgars, South Africa's largest retailer, Barclay’s acquisition of 60% of ABSA Bank, ICBC’s purchase of a 20% stake in Standard Bank and the US$1 billion investment by Istithmar and others in the V&A waterfront development in Cape Town.

With these developments in mind, SJ Berwin LLP’s Southern Africa Group recently hosted over 120 of its clients and contacts for a traditional “braai”, held on 11 June on the firm’s rooftop terrace overlooking the Thames (local is lekker). Guests were welcomed to the beating sounds of “Drum Café”, local beers and wines and “biltong”. Pictures of the event may be viewed here.

Ashok Bhundia, the Goldman Sachs South Africa Economist was invited to give his views of the region. Mr Bhundia is based in South Africa and flew to London especially for the event. After being introduced by Craig Pollack, head of SJ Berwin LLP’s Southern Africa Group, Mr Bhundia opined that despite a number of challenges facing South Africa, there was a very positive sentiment regarding the South African economy. Mr Bhundia concluded that if investment in education was maintained and levels of crime were reduced, the medium to long term social, economic and political aspirations of South Africa could be achieved. Further, optimism stems from the eagerly anticipated hosting by South Africa of the 2010 Football World Cup, together with the increased investment and exposure that will inevitably follow.

With the hard work of feasting on traditional “boerewors” rolls washed down with Castle and the winelands’ finest, complete, guests were invited to join in with “Drum Café” and were shown how to beat along to traditional African tunes. This interactive part of the evening was tremendously entertaining and a short clip may be viewed here.

The event was both informative and enjoyed by the firm’s clients and contacts with interests in Southern African.  It is intended that the South African “Braai” becomes an annual SJ Berwin LLP client event. A donation was also made by the firm, on the guests behalf, to Starfish, the South African based charity focussing on HIV/ AIDS orphans. The donation will fund an afternoon crèche for 72 kids for a year!

SJ Berwin LLP recently published the first of its quarterly newsletters of international and local legal considerations for investing in Africa or investments outside Africa by Africans, which may be viewed here. Contributions to the bulletin have been made by the continents leading law firms and the bulletin includes an article considering global depository receipts and their use as a financing tool by emerging markets companies, an overview of private equity investment in Kenya and foreign investment in securities in the Tanzanian capital market, a summary of some of the interesting aspects of the recent ICBC/ Standard Bank deal, a consideration of the impact of exchange controls on investments by non-residents into South Africa as well as an overview of black economic empowerment and the relaxing of financial assistance in South Africa.

For further information regarding SJ Berwin LLP’s Southern Africa Group please contact:

Craig Pollack
Partner, Head of Litigation
T +44 (0)20 7111 2275

Ylan Steiner
Partner, Corporate
T +44 (0)20 7111 2400

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