A Perth-based legal expert says Australian companies investing in Africa are facing an increasing risk of exposure to corruption and violence.
A recent Deloitte report has revealed the success of more than 200 Australian companies mining in Africa is on the rise, despite a slowdown in global manufacturing activity.
But Perth business lawyer Allan Drake-Brockman says, despite the significant opportunities offered in Africa, the risks involved are escalating as the number of mining projects increase.
He says resentment is building between foreign workers and locals due to wage disparities.
"Australian companies need to make sure they're complying with all the local employment laws and, as far as possible, managing the fact that they will have expatriate contractors operating who will be getting quite a bit more than the local workforce," Mr Drake-Brockman said.
He says companies need to set consistent wages and conditions to ensure harmonious workplace relations.