Overlapping US and China sanctions complicate business in Africa

African businesses are navigating a complex compliance landscape created by the intersection of U.S.-imposed sanctions and a growing number of Chinese laws designed to counter them. This situation presents a significant challenge for companies operating in sectors where they engage with both American and Chinese counterparties.

Analysts indicate that a wide range of industries, including mining, banking, telecommunications, technology, and energy, are at risk. African businesses in these sectors find themselves simultaneously exposed to the economic and regulatory pressures exerted by the world's two largest economies. Compliance consultants operating across the continent have reported a notable increase in inquiries from companies and investors seeking to understand their exposure to these overlapping measures.

"China's new regulations present a complex challenge for the continent as it is not a simple binary choice but a navigation of overlapping pressures," said Cheta Nwanze, a partner at SBM Intelligence, a Lagos-based risk consultancy. He further noted that investors are dedicating substantial resources to ensure their operations do not violate sanctions and export controls.

The U.S. Office of Foreign Assets Control (OFAC) currently manages at least 37 active sanctions programs targeting diverse entities, ranging from countries to specific companies and individuals. This intricate web of regulations requires African businesses to exercise extreme diligence to avoid violations.

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China’s new regulations present a complex challenge for the continent as it is not a simple binary choice but a navigation of overlapping pressures