Since the Law Practitioners Act was introduced in 2009 the legal market has changed considerably. Offshore leaders Appleby and Conyers Dill & Pearmen were quick off the mark to establish offices and have had success to putting together young teams and making an impact....
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Since the Law Practitioners Act was introduced in 2009 the legal market has changed considerably. Offshore leaders Appleby and Conyers Dill & Pearmen were quick off the mark to establish offices and have had success to putting together young teams and making an impact. Recent changes have seen Eversheds abandon its office but offshore firm Bedell Cristen establish (2011) and rumours are that some of the other offshore specialists are moving in.
"Appleby and Conyers have increased their market profile and had a very good run, also Bedell and there is growing interest from others... but we are not expecting any of the big city law firms to have an office here," says a local lawyer.
The home-grown firms have adapted in an unexpected way. Barristers' chambers, rather than solicitors, were quicker to take the opportunity and the leading chambers have reformed into firms taking the brunt of corporate commercial mandates. "Solicitors should have been quicker on their feet to do this but they haven't, and it is barristers who are doing most of the transactional work and the demarcation between barristers and solicitors is fading off," argues a local barrister.
Up for grabs is a flow of investment into and out of India, between Africa and Asia, and Africa and the EU and US and a growing local market.
"We have seen a number of financial projects in East Africa: a railway from Kenya to Cairo along the Cape Town to Cairo road [the Pan African Highway], investment in agriculture in Ethiopia and Namibia and elsewhere in minerals, copper and ore, a continuing flow of investment from China into Africa and the US and EU are seeing the benefit that Africa holds and because China is there and they don't want to lose out," says a lawyer. "There are higher economic indicators in African countries, increased progress and better governments; Africa is the last frontier, massive potential for growth in telecoms, resources and infrastructure," adds another.
"Quite a number of deals, listing of shares, setting up of funds," says one lawyer who sees "more Africa related transactions, setting up more funds to invest into Africa and more financing deals relating to Africa".
The local market avoided recession and has seen a steady flow of construction, real estate and insurance related transactions. Lawyers also note that investments are a taking a more permanent form, "from just setting up investment companies to establishing joint-ventures and funds which are much more permanent and formal," says one.
India remains a key draw. In 2011 there was a 'mini-crisis' when India decided to revise the double tax treaty with Mauritius which led to "uncertainty and speculation [and] investors getting cold feet with start and stop transactions". However consensus is that the jitters were based purely on rumours and were soon over. "We will start with a new treaty, it needs to be dusted off and modernised with some new conditions," says a partner.
Lastly, the island has been very successful in projecting itself as an international arbitration centre, a strategy which has greatly boosted its legal sector reputation.
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