WHITE & Case’s decision to deploy a number of London-based lawyers in Africa is a useful way of dealing with some of its issues in the City, but it is also a good strategy in a wider context.
Like many other firms, White & Case is taking steps to cut back its global headcount, with up to 400 job losses expected to be announced.
Redeploying lawyers to busier offices has been a theme over the past year (White & Case sent London partner Jonathan Weinberg to Prague last month), but with work slowing across the globe, the scope for this has now been largely exhausted.
Africa, though, is still a reasonably untapped market and White & Case already has a presence in Johannesburg.
As one partner at another firm with a presence in Africa says: “White & Case is emphasising the importance of Africa. They’ve been there for a long time.
“They’ve made money from Johannesburg and this is a further commitment to the continent by White & Case .”
The firm will be focusing its efforts on specific African nations, with Angola, Kenya, Mozambique, Nigeria and Uganda all priorities.The significance of Africa for the future of the legal sector has not been missed by the Law Society and, writing for The Lawyer last week, former president and Law Society Council member Andrew Holroyd said the body is focusing on nurturing the relationship between UK law firms and their counterparts in Nigeria.
“For law firms, diversifying through overseas activity can be an effective way of coming through this slowdown,” he said. “Although the impact of the financial crisis has been felt in Nigeria, as it has in other African markets despite predictions to the contrary, Nigeria remains an attractive market following reforms in the banking and insurance sectors.
“It cannot be denied that the country has been exposed, albeit indirectly, to the fallout from the collapse of the debt markets. A reduction in direct investment from overseas, drops in oil prices and the continued violence in the Delta region have made Nigeria less attractive than a year or so ago.”
That said, Holroyd added: “Compared with the rest of the world, Nigeria is well placed and is even showing the shoots of recovery that other economies the world over are dreaming of.”
“That’s a major point – there are very good local firms, and rather than setting up to compete with them, it makes sense to work with them and develop strong links.”
This is a view shared by Denton Wilde Sapte Africa practice director Paul Bugingo, who has been working on the continent for the past 10 years.
Dentons was an early mover into Africa and operates there via tie-ups with 10 regional firms.
According to Bugingo, this model is rising in popularity among international firms looking to tap into the lucrative work coming out of Africa
“Some firms are looking to build links with a leading firm on the ground – DLA Piper’s done that and we’re seeing Eversheds doing that in Johannesburg,” says Bugingo. “It’s probably more popular now to have alliances with local firms, which are good.
“That’s a major point – there are very good local firms, and rather than setting up to compete with them, it makes sense to work with them and develop strong links.”
But while there are 52 countries in Africa, Bugingo points out that, for international firms seeking alliance partners, some countries may not offer many firms to choose from.
“In some countries, like Nigeria or Kenya, there’s a lot of options,” he says. “In others there might just be one or two suitable firms, but they’re the ones that won’t have the greatest attraction for international law firms because there’s not so much work there.”
However, with Africa shaping up to be the hottest emerging market, perhaps these less-established nations are where firms trying to break into the region should look to build presences.
As Bugingo points out, Dentons formed an alliance in Tanzania when there were just two suitable firms. Now, he says, there are four or five.
While White & Case’s decision to up its focus on Africa may be driven out of necessity, it could be exactly what the firm needs to guide it through the recession. But, with failed ventures in Italy and Germany behind it, the firm will need to chart its course with care.
The Lawyer has just lost a reader. The Lawyer has become a mouthpiece for the propaganda and positive “spin” spewed out from White & Case. And The Lawyer has stopped publishing any comment which is unfavourable to White & Case. This website is not worth reading anymore if it continues to do this. The story above is not news. It is just a piece of propaganda from the marketing department of White & Case and was issued to divert attention from all of White & Case’s problems and its struggle for survival. A move into Africa is not going to “save” White & Case. Goodbye, The Lawyer!
W&C is clearly is shadow of its former self. And even among the firms at the top of the queue in relation to work coming out of Africa, W&C is rock bottom. Ask any insider in this market and they would say White Who?
I disagree with 3:28 but not entirely. And 10:47 doesn’t have it quite right either. W&C has always been a Tier 2 (at best) firm that wants to break into the top bracket. It has tried this by becoming a key player in emerging markets – in Eastern Europe and Brazil, there certainly isn’t anyone asking “White Who” at all. But once there, the firm doesn’t do anything to enhance its position.
So the problem that W&C has had is its inability to actually do anything from its emerging markets strategies. Rather than cement its efforts into anything like a profit center, W&C tends to take what it can from these markets without properly exploit them. Historically speaking, it’s how the Dutch colonized v how the English did – and look who had the longer-lasting empire.
This is why firms such as Simpson or Skadden can suddenly walk into, say, Brazil and poof! – within a short time become suddenly relevant in that market, while W&C slides into also-ran status. Perhaps that’s a bit harsh and overgeneralized but the fact remains that the firm tends to give up competitive advantage.
Going into Africa? Good, there’s loads of money to be made there, particularly for a top project-finance firm like W&C. But doubtless what will happen is that the firm will do the grunt work, lay down tracks… and then other NY firms will come in and take advantage of the goodwill and establish positions.
Very well thought out 6:50. You are indeed a paragon of balance. But please show me one industry name that W&C has who would inspire confidence. I work with several emerging market funds and W&C never figures in any discussion. It has been overtrading for a while and the recession could not have come at a worse time. So Africa could well be W&C’s Waterloo!
This is a great deal, something between absurd and unbelievable. Africa is going to be the right place to stop the crisis … It is very well known that Africa as a lot of corporate, banking , financial and capital maket work awaitng for foreign law firms. Suffering the Crisis? Relocating hundreds of lawyers in Africa: is simple and quick!
Africa? If you read the trend these days, its Mauritius which is the pick. Mauritius is ranked 1st or 2nd in the ease of doing business, overall tax rate for corporate goes to a mere 3%. Denton Wilde, Appleby, Conyers Dill Pearman are already over there and ripping all the benefits.
A White Elephant may be a rare commodity out there and pay off. Might become so rare however, we’ll only be able to see it on safari.
Let’s get some real news out of White & Case! When are we going to hear about the partnership cull???
Being a lawyer also demand having talent. Everyone has problems so should White & Case law firm if at all they have as claim by a reader comments above . And if they want to resurrect or prove their worth if they meant what is read above, they should facilitate their move in working with some law firms in Nigeria. People there are responsive to ideas and innovations. They are just wainting to be tapped. A handful of justice or legal professional in a country like Nigeria is a welcome idea that the mass are longing for.