Team size:  Seven

 What are the most significant cases and transactions that your legal team has recently been involved in?

We have recently concluded a transaction in terms of which Engie G.D.F International (the Purchaser) purchased 100% of the indirect equity interest held by Actis Energy Okavango Holdings Mauritius, which holds 100% of the equity interest in BTE Renewables. The transaction was a cross-border transaction, as it involved the purchase of all the operating companies in Mauritius, Luxembourg, Kenya, and South Africa. The Purchaser then sold the Kenyan portfolio to Meridiam.

What are some of the main trends impacting your industry in South Africa?

There are several trends impacting the industry in which we work. Firstly, from a legal perspective, there is a high turnover of skilled legal resources leaving South Africa. Consequently, recruiting talent into the renewables industry proves difficult, as it is still considered a relatively “new” industry in South Africa, lacking the established depth of talent seen in other industries such as retail, mining, and healthcare. Therefore, the few resources that are available are highly competitive, making the retention of such resources a challenging task.

The renewable industry in South Africa is a dynamic sector, but several factors are posing challenges for businesses to grow rapidly. Firstly, infrastructure challenges have been highlighted in the recent round of the Renewable Energy Independent Power Producer Programme. Despite the program advocating for 4200MW of Wind Projects, no wind projects were awarded as there was insufficient grid capacity in provinces where the wind resource is most prominent.

Secondly, there have been a number of regulatory obstacles in the industry that have made it difficult for projects to proceed. However, these challenges are slowly being resolved as there is more political will for renewable projects.

How do you suggest in-house lawyers build strong relationships with business partners?

First and foremost, legal teams must establish a relationship based on trust and reliability with their business partners. If your business units and Board(s) trust the advice from your legal team and can rely on them for assistance as needed, the legal team will be considered an integral service to the business and will garner the support they need when requested, for example, budget approval or additional resources. In order to achieve this, the legal team will need to be flexible and consistent to meet the demanding and changing requirements of the business units.

To ensure that legal teams consistently deliver a high standard, internal legal teams must foster a collaborative and cohesive working relationship. This approach will allow the team to support one another and meet the increasing demands of the business units.

External legal costs are consistently a point of contention for internal business units, specifically the finance departments. Accordingly, legal teams must be cost-conscious and only utilise external legal resources for complex, large projects, specific or niche advice (that the legal team is unable to assist with), or where the team is under-resourced. If the legal team is perceived to be using external legal resources unnecessarily, the other business units will not support the necessity or growth of the legal team.

Legal teams can play a valuable role in helping shape and drive the business strategy, consequently becoming respected business partners. To achieve this, legal counsel must continually consult with various departments within the organisation to understand what they require and their objectives. From an external perspective, legal teams must stay on top of industry developments, encompassing economic, political, and legal aspects, thereby providing well-rounded advice to the respective business units.