Principle 4: anticipating political risk

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The fourth principle consists in anticipating political change, whose frequency recent African history makes plain: coups d’état, contested transitions, changes of government. A leader in office today may be overthrown tomorrow and see his assets frozen, as the Abacha, Ben Ali and Gbagbo cases have shown. A contract concluded with a government may be renegotiated or repudiated by its successor. A pre-financing arrangement may become unsustainable after a fall in prices or a change of regime.

Anticipation rests on the analysis of political scenarios, on the diversification of exposures, on legal protections — investment treaties, arbitration, political risk insurance — and on the documentation of decisions. An institution that can demonstrate, after a change of regime, that it had analysed the risks and taken reasoned decisions is in a far better position than one that accepted relationships without examination.

Anticipation also concerns the conduct to be adopted when change occurs. Institutions must know how to respond to an asset freeze ordered by the Federal Council, to a request for mutual legal assistance, to a criminal investigation or to a suspicious activity report: retention of documents, cooperation with the authorities, information of the governing bodies, communication.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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