In Africa, there are 340 money agents per 100,000 people. Yet, only six ATMs per 100,000. With the continent yet to embrace any real ambitious litigation finance marketplace, the question remains if a new form of business such as litigation funding can sweep across Africa.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
In Africa, there are 340 money agents per 100,000 people. Yet, only six ATMs per 100,000. With the continent yet to embrace any real ambitious litigation finance marketplace, the question remains if a new form of business such as litigation funding can sweep across Africa.
Simon-kucher.com’s new report on banking in Africa outlines the pivotal role mobile money has played in innovation of the continent’s banking sector. Similarly, money agents offer financial services including taking deposits, cashing out funds and facilitating transactions. The report suggests that the future of litigation finance in Africa consists of building strong litigation investment portfolios.
The value in African litigation finance lies in capturing premium cases in key markets. Also, international human rights litigation can be acted upon simultaneously in large Western markets (like New York State). For example, a human rights claim of a large bank in New York who had potentially violated human rights in Kenya could be a segway into building a strong ligation investment portfolio in Africa.
There are many barriers to entry for litigation funders in Africa, but as the report notes, there is opportunity as well.
