OHADA Moves Toward Financial Sovereignty: New Strategies to Secure Africa’s Business Law Framework

For businesses operating across Africa, the Organisation for the Harmonisation of Business Law in Africa (OHADA) is more than just a regulatory body; it’s the backbone of legal certainty in the region. However, the institution has reached a critical juncture. To ensure its long-term survival and effectiveness, OHADA is pivoting away from uncertain external funding toward a model of total financial autonomy.

During a recent special session in Lomé, Togo, finance ministers from member states and OHADA experts convened to address a “delicate financial period” facing the organization. The consensus was clear: for OHADA to continue driving African integration, it must secure its own wallet.

The Drive for Financial Autonomy

The session, presided over by Essowè Georges Barcola, the Togolese Minister of Finance and Budget and acting co-president of the OHADA Council of Ministers, emphasized that a strategic organization cannot rely indefinitely on unpredictable external sources. Barcola described the session as one requiring “courage, lucidity, and innovation.”

To stabilize the institution, member states have committed to several immediate actions:

• Implementing Autonomous Funding: Shifting the primary financial burden away from external donors.
• Contribution Regularization: Ensuring member states meet their financial obligations.
• Clearing Arrears: Establishing tailored mechanisms to progressively pay off outstanding debts.

Innovative Revenue Streams and Digitalization

Moving beyond traditional member contributions, OHADA is exploring “innovative resources” to diversify its income and reduce the pressure on national budgets. These strategies leverage technology and the very legal framework the organization manages.

Digital Transformation as a Revenue Driver

One of the primary pillars of the new strategy is the digitalization of the trade and securities register (registre du commerce et du crédit mobilier). By modernizing these records, OHADA aims to create a more efficient system that can generate sustainable revenue through service fees.

New Funding Mechanisms

The organization is also validating the implementation of several new financial tools:

• The OHADA Fee (Redevance Ohada): A dedicated fee designed to provide a steady stream of operational income.
• Endowment Fund: The creation of a fonds de dotation to provide a financial cushion and long-term stability.
• Targeted Levies: Exploring fees on specific legal acts and voluntary contributions from economic actors.
• Sustainability Links: Developing funding models tied to the digital transition and ecological transition.

The Road to 2028: The Budget-Programme

A significant structural shift is on the horizon. Participants in the Lomé session validated the transition of the permanent secretariat to a Budget-Programme model by 2028. This shift represents a move toward results-based budgeting, where funding is tied to specific performance indicators and strategic goals rather than simple line-item expenditures.

Professor Mayatta Ndiaye Mbaye, the Permanent Secretary of OHADA, noted that a financially stronger organization directly translates to better legal security and economic transparency for member states. He urged finance ministries to remain deeply involved to ensure the organization’s actions align with current economic realities.

Why This Matters for African Markets

Financial instability at the regulatory level creates risk for investors. When the body responsible for harmonizing business law is in a “delicate financial period,” the efficiency of dispute resolution and the updating of legal acts can suffer.

By securing its funding, OHADA ensures that the “rules of the game” for business in Africa remain consistent, transparent, and enforceable. This sovereignty is not just an administrative goal; it is a prerequisite for the legal integration of the continent, making it more attractive for both intra-continental and foreign direct investment.

Frequently Asked Questions

What is the primary goal of the Lomé session?

The primary goal was to strengthen OHADA’s financial autonomy to ensure the organization remains sustainable and effective in its mission of African legal and economic integration.

How will digitalization help OHADA’s finances?

By digitalizing the trade and securities register, OHADA can modernize business registration and credit tracking, allowing the organization to generate revenue through digitized services.

What is the “Budget-Programme” mentioned for 2028?

It is a management approach where the budget is allocated based on specific programs and objectives, shifting the focus from spending to measurable outcomes and efficiency.