African law firms are increasingly angry at the way global legal firms disregard or disrespect their knowledge and expertise, believe the global elite to be ‘fee-hogging’ and see them as ill informed about the realities of doing business in their country, according to a recent report from Redstone Consultants. The report claims global firms are ill informed about the realities of doing business in Africa which impacts on their performance for clients and creates opportunities for local firms. It also says African firms get angry when global firms disregard or disrespect their expertise and knowledge. Putting juniors onto projects to manage the Africa relationship underscores that poor impression, it claims.

Money is an issue

Money is an issue with African firms still getting a small slice of project fees - 'fee hogging'. Other complaints are that African firms are highly dependent on referrals from international law firms but globals do not refer work back – instead passing it to other African players when they are unable to service it. Most are reluctant to be tied too closely to any one firm, preferring to cast the net wide. On the other hand, global firms see  most African firms as 'reactive' in their relationship management. As a result, many global firms experience them as being 'disloyal' and complacent. With the exception of South Africa, African firms’ willingness to refer work to other African firms is largely unaffected by that firm’s ties to an international firm or network.

Competitive threat

The report finds that African firms see global firms as their greatest competitive threat – African firms from outside their jurisdictions are not seen as a great threat yet.African firms are increasingly interested in developing or joining networks of firms in Africa.  But global firms report that international clients are unconvinced that these networks have substance. South African firms are pushing to be masters of some of these pan-African networks.

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