US-China sanctions war creates compliance maze for African businesses

A growing web of US sanctions and Chinese counter-sanctions is forcing African companies to navigate a treacherous compliance landscape. The US Office of Foreign Assets Control (OFAC) currently administers at least 37 active sanctions programs targeting countries, companies, and individuals. Meanwhile, China has introduced new regulations designed to counteract these measures, creating overlapping legal pressures for African firms that operate across both economies.

Industries most at risk span mining, banking, telecommunications, technology, energy, and infrastructure—sectors where African businesses frequently engage with both US and Chinese counterparties. Compliance consultants report a sharp increase in inquiries from companies and investors trying to gauge their exposure. “China’s new regulations present a complex challenge for the continent as it is not a simple binary choice but a navigation of overlapping pressures,” said Cheta Nwanze, a partner at Lagos-based SBM Intelligence. Investors coming into Africa are now devoting significant effort and resources to ensure their operations do not violate either nation's rules.