The exit of two global firms: A new chapter?

During September 2024, two major global law firms announced plans to close their offices in South Africa, taking many in the industry by surprise. Brent Botha, CEO of Norton Rose Fulbright South Africa, shares his opinions on the move and how it should be read in the current market.

The exits of A&O Shearman and Hogan Lovells from the South African market have sparked questions about the future of global law firms in the country. While these departures may, on the surface, appear to signal a waning interest in the region, the reality is far more complex. Moves like these are often less indicative of Africa’s potential and more reflective of internal strategic realignments within these firms.

Many firms recognise that Africa’s growth trajectory remains upward, and as some firms depart, others are doubling down ‒ like our own.

Africa remains a frontier of untapped potential for international law firms that are willing to adapt their service offerings to local conditions, and South Africa is still the entry point and launch pad for businesses looking to invest into Africa. The country’s stable legal environment and its deep ties to the continent continue to make it a prime location for firms aiming to expand their African footprint, whether through collaborations with local firms or operating out of neighbouring countries such as Namibia, Kenya, Mauritius or Nigeria.

For South African firms, this is an opportunity to step into the gap left by the global departures and assert our role as key players in the continent’s legal sector. It is crucial for the local legal industry to build expertise in the sectors driving Africa’s growth, such as infrastructure, technology, agriculture and energy. We need to embrace innovation through legal technology and provide more flexible, client-centric solutions that will be pivotal for future success.

Africa is maturing into a multifaceted, knowledge-based economy that is not only rich in natural resources but is also loaded with innovation, particularly in the technology and energy sectors. For law firms, this presents both a challenge and an immense opportunity. Those firms that can navigate the region’s regulatory complexities, while also tapping into the broader African growth story, will find themselves at the forefront of a new wave of legal transformation.

The exits of A&O Shearman and Hogan Lovells should not be interpreted as a withdrawal from Africa’s legal future, but rather as a reshuffling that opens the door to agility and adaptability. International and local law firms alike must recognise that the continent’s legal needs are growing and evolving, presenting a wealth of opportunity for firms willing to invest in Africa’s future.

The departure of these global firms from South Africa marks the beginning of a new chapter. Law firms that can combine global expertise with local insight are poised to shape the legal landscape of Africa for decades to come.

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