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February 23, 2021
Categories
  • Africa Integrity insights
  • Central Africa
  • East Africa
  • North Africa
  • Southern Africa
  • West Africa
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UK Supreme Court Ruling: The Implications for Multinational Companies Operating in Africa

Earlier this month, the UK Supreme Court overturned previous judgements and ruled that Royal Dutch Shell can be sued in English courts for damage caused by its Nigerian subsidiary. In doing so, the court rejected Shell’s argument that its UK parent company was merely a holding entity and, therefore, not liable for claims emanating from Nigeria.

The implications for multi-national companies are significant: under English law, this ruling establishes a precedent that you are now legally responsible for your subsidiaries’ actions overseas and are no longer able to limit the risk of litigation to the country of operation. In the case of Shell, litigation proceedings can now be brought against the company in the UK for alleged environmental pollution in the Niger Delta.

The court’s ruling underscores the importance of conducting thorough due diligence of local subsidiaries and their partners overseas, particularly in jurisdictions where environmental protections and other regulations may not be as stringently enforced as in the UK. Failure to do so now exposes parent companies to the threat of UK legal proceedings.

This is where Africa Integrity can be of assistance, by providing invaluable local knowledge to clients through our specialist team of on-the-ground investigators. We have over 10 years of experience in assessing ethical threats and risks in Africa, including those posed by environmental damage and difficult relations with local communities.

In light of this legal development, there has never been a more important time to boost your organisation’s due diligence capabilities. Get in touch to explore how we can support you and your business operations.

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AFRICA INTEGRITY INSIGHTS

Twitter

Reform of #Nigeria’s petrol subsidy will be a key political issue for the new administration in the wake of next month’s election. With the cost-of-living worsening, any attempt to remove or cut the subsidy will trigger strong resistance #NigeriaDecides2023

Reuters Africa@ReutersAfrica

Nigeria will keep its costly but popular petrol subsidy until mid-2023 and has set aside 3.36 trillion naira ($7.5 bln) to spend on it, Finance Minister Zainab Ahmed said on Wednesday. https://www.reuters.com/world/africa/nigeria-spend-75-bln-petrol-subsidy-mid-2023-2023-01-04/#:~:text=ABUJA%2C%20Jan%204%20(Reuters),Zainab%20Ahmed%20said%20on%20Wednesday.

Following the expulsion of a senior UN official and removal of Burkina Faso from the US AGOA trade program, reports that authorities are calling for the French ambassador to be recalled indicate the growing tensions between #BurkinaFaso and its traditional international partners

Jeune Afrique@jeune_afrique

Au #BurkinaFaso, les autorités de transition ne veulent plus avoir affaire à Luc Hallade, l'#ambassadeur français. « La question est plus de savoir ce que nous souhaitons faire de notre relation bilatérale », commente une source officielle à #Paris.
http://ow.ly/UQbZ50MhauL

Earlier this year, we examined the relationship between the conflict in Ukraine, food insecurity and societal instability in Africa. As Africa’s food crisis worsens in 2023, what will be the impact on social cohesion on the continent? #Africa #foodsecurity

Reuters Africa@ReutersAfrica

Across Africa, people are experiencing a food crisis that is bigger and more complex than the continent has ever seen, say diplomats and humanitarian workers https://reut.rs/3Yms7Mg
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#Nigeria: Next year’s election looks set to be one of the most competitive in the country’s history, with a third-party candidate shaking up the contest. We examine the implications of this on our Africa Integrity Insights blog https://africa-integrity.com/nigeria-2023-a-three-horse-race #Nigeriadecides2023

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