A guide to third party funding in Africa
Given the current backdrop of global economic uncertainty, we recognise that sophisticated litigation finance solutions may be necessary when pursuing certain claims.
Africa is no different and offers many opportunities across the continent. A number of high-profile cases on the continent have been brought with the backing of a third party funder, and funders continue to see Africa as a key geography for the growth of their businesses.
While the high value international disputes are the natural target for funders, the more widespread uptake of third party funding (TPF) in Africa has been slower to take root. Even in South Africa, the most mature market in Africa for TPF, the number of cases that are funded remains relatively small. Contingency fee arrangements (CFAs) are more common, although not permissible in all African jurisdictions.
Our guide to third party funding in Africa summarises the current legal position on the enforceability of TPF arrangements in 20 civil and common law jurisdictions across the continent where DLA Piper Africa operates. We discuss some of the opportunities and practical challenges to the use of TPF, as well as ways to manage these challenges.