A Reform of Business Law, Initiated by 17 African Countries, Now Impacts the Management of French Humanitarian Organisations.

For many, the African continent is synonymous with crises and challenges. It is true that the disastrous consequences of recent geopolitical issues do little to alter this perception.

However, a closer look reveals that African countries are neither isolated from efforts to modernise institutions and better integrate political, economic, and social actors into an increasingly globalised world, nor from the democratic aspirations of their citizens.

To illustrate this, we can examine the evolution of business law affecting the 17 African countries that ratified the Port-Louis Treaty between 1994 and 2012. These countries include Côte d’Ivoire, Senegal, the Democratic Republic of Congo, Burkina Faso, Mali, Niger, and the Comoros, among others.

The harmonisation of legal systems is spearheaded by the Organisation for the Harmonisation of Business Law in Africa (OHADA), established in 1993. Some observers attribute this initiative to the influence of the World Bank, following the end of the Cold War, as a means to adapt to the era of globalisation.

OHADA’s stated objective is “to facilitate trade and investment, and to ensure legal and judicial security for business activities.” The legal framework developed by OHADA aims to propel economic development and create a large, integrated market, positioning Africa as a “development hub.” The harmonisation process encompasses various areas, including general commercial law, insolvency proceedings, cooperative law, the transportation of goods by road, accounting, tax, and financial standards, and, as of 2024, regulations for non-profit organisations.

In practical terms, French NGOs operating in OHADA member states must now produce separate financial statements, including balance sheets, income statements, cash flow tables, and financial annexes, for each OHADA country in which they operate. These documents must be submitted to the relevant authorities in each African country. Additionally, NGOs are subject to audit procedures covering donations, financial statements, and management reports. Before 2024, financial and accounting elements existed, but they were often less standardised and detailed, typically included in financial reports published in France.

Some view these procedures as an increase in bureaucratic burdens on humanitarian NGOs, which could lead to higher management costs—already criticised by private donors. Others fear that the detailed information might be exploited by states inclined to politicise international humanitarian efforts.

Many, however, commend this formalisation effort, arguing that it will help NGOs manage their interventions more effectively and provide better accountability to the populations they serve and their donors.

In any case, these measures align with commitments made at the World Humanitarian Summit in Istanbul in May 2016 (“The Grand Bargain”), where major donors and humanitarian organisations pledged to increase “transparency” in aid management and to provide “greater support to local and national responders.”