The Trap of Path Dependence: A Case Study of OHADA

Abstract

The Organization for the Harmonization of Business Law in Africa (OHADA) was developed to introduce simple, up-to-date business laws in its member states. It has various goals, including harmonizing business laws, attracting foreign investment in its member states and promoting broader economic integration across Africa. At its initial development stage, OHADA chose a path dependence route, which positively impacted the achievement of some of its initial goals. While OHADA has been widely praised for its efficient business laws, its commitment to path dependence is likely to create a trap for the organization, hindering its further progress. This article analyses the unification of law in African former colonies from the critical perspective of path dependence theory. It examines how OHADA’s legal choices have impacted its various objectives at different stages of its development. Ultimately, the article proposes that OHADA amend its legal framework to achieve its broader aspirations.