Tolulope Fadipe, the Assistant General Manager, Legal at Sahara Group, delivered a compelling message at the recently concluded Afreximbank Trade Finance Seminar (ATFS2023) in Lagos. Fadipe highlighted the critical role of building in-house legal capacity as a means for energy companies in Africa to significantly reduce transaction costs stemming from legal fees.
In his address to industry experts and stakeholders, Fadipe emphasised the importance of bespoke training and collaboration with renowned law firms to foster knowledge acquisition and enhance technical proficiency required for handling intricate transactions within the African continent and beyond.
Fadipe argued that having in-house lawyers and personnel well-versed in the legal intricacies of complex transactions represents the most effective approach for companies to mitigate escalating legal expenses. He asserted, “Full participation of company lawyers in strategy development and transaction execution is essential when seeking to curtail legal costs. Energy firms must make a deliberate effort to broaden their expertise across various energy projects and transactions.”
Moreover, Fadipe proposed several strategies to reduce legal expenditures in the industry, including in-house transaction strategy reviews, leveraging technology, and implementing virtual transaction processes. He underlined that these approaches could significantly cut down legal costs incurred by organizations during project execution.
“At Sahara Group, we are committed to providing our team with opportunities to enhance their capabilities to support our diverse energy operations across Africa, Asia, Europe, and the Middle East. This commitment has resulted in substantial cost savings and overall value addition to our operations,” Fadipe remarked.
Furthermore, Fadipe shed light on the major drivers of legal costs in international finance transactions. These factors include regulated solicitors’ charges in the transaction’s jurisdiction, travel expenses incurred by external counsel during due diligence and other phases of the transaction, transaction complexity, the availability of competent legal counsel in the transaction’s jurisdiction, and the need for bilingual services, among others.
He concluded by emphasizing the significance of strategic talent acquisition for in-house legal teams and adopting a robust capacity-building strategy to support regional and international transactions from the outset of the hiring process.
Tolulope Fadipe’s insights at the ATFS2023 underscore the growing awareness within the African energy sector of the pivotal role in-house legal capacity plays in enhancing efficiency, reducing costs, and driving value across the industry’s spectrum.