A growing list of Chinese laws aimed at countering US-imposed sanctions and measures targeting other countries are creating a compliance zone for African businesses operating with the world's top two economies.
A wide range of industries are at risk, including mining, banking, telecommunications, technology, energy, infrastructure and others, according to analysts, with African businesses simultaneously exposed to American and Chinese counterparts.
Compliance consultants covering the continent have reported an increase in inquiries from companies and investors looking to assess their risk.
“China's new regulations present a complex challenge for the continent because this is not a simple binary option, but a navigation of overlapping pressures,” said Cheta Nwanze, partner at SBM Intelligence, a risk consultancy based in Lagos, Nigeria.
Nwanze said investors coming to Africa are devoting significant efforts and resources to ensure that their operations do not violate sanctions and export controls.
Currently, according to the US Office of Foreign Assets Control (OFAC), a unit of the US Treasury Department, there are at least 37 active sanctions programs in the US, with diverse targets ranging from countries to companies and individuals.