Project Finance

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Can African governments head off a sustained spike in the spread of COVID-19 and recover economically in 2021? How will the Biden administration engage the continent? Will companies implement more effective due diligence efforts in their supply chains to prevent human rights abuses? What impact will efforts to battle corruption and mitigate climate change have in the coming year? Covington’s Africa Practice offers insights on these questions and other key issues that will define 2021 on the continent.

COVID-19 Recovery: Since Africa confirmed its first COVID-19 case in February 2020, every country has been affected, leading to over 100 million cases and two million deaths. The World Health Organization applauded African governments for their swift responses which curtailed wide-spread infections but contributed to the region’s first economic recession in twenty-five years. Over the last month, Africa has been hit hard by a second wave of COVID-19. Daily case rates have increased to almost twice the rates in July and August 2020, prompting South Africa, among other nations, to re-impose severe measures aimed at preventing deaths.
Continue Reading Top Issues to Watch in Africa: 2021

As project finance becomes more widespread in Africa, government officials, bankers and developers will all become exposed to the complex documentation that comes with it. Some of the payment mechanisms can be very complicated and lawyers are often asked to include “worked examples” in the documentation. A recent case looked at the use of worked examples in contracts governed by English law. The court concluded the following:

  • worked examples are integral parts of finance and other commercial contracts;
  • it is often only when narratives and formulae are worked through that their true effect can properly be seen;
  • where there is more than one worked example, consistency among the examples (in this case the inclusion of a missing step), strongly suggests that this was a deliberate choice by the drafter; and
  • it is inherently more probable that the parties’ true bargain is to be found in the worked examples.

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Continue Reading Making Your Intentions Known in Contract: Complex Formulae