Pre-Transaction Due Diligence Checklist
This is the short-form checklist we recommend buyers complete before committing capital to an African commodity transaction. It is the condensed version of our full 50-point checklist, focused on the checks that must be completed before funds move. If any of these checks cannot be satisfactorily completed, do not proceed.
Phase 1: Before you engage the supplier
Before you even begin detailed discussions, run these preliminary checks.
- Confirm the supplier exists in the official company registry
- Check the registration status is active
- Screen the supplier and beneficial owners against sanctions lists
- Search for adverse media, litigation, or regulatory actions
- Assess whether the offer is commercially plausible (price, volume, origin)
Phase 2: Document review
Once you have the document set, review it systematically.
- Verify the export permit against the issuing authority
- Confirm the permit is issued to the exact entity you are dealing with
- Check the permit is current and covers the proposed transaction
- Authenticate the certificate of origin against the issuing authority
- Cross-check the assay certificate against the rest of the document set
- Verify all weights, dates, and descriptions are consistent across documents
- Check for any formatting inconsistencies that suggest forgery
Phase 3: Chain of custody
Ask the supplier to walk you through how the commodity reached them.
- Can the supplier specify where the commodity was mined?
- Are there documents supporting each custody transfer?
- Is the custody path consistent with the transport documents?
- Are there any timeline gaps that cannot be explained?
- Is the sourcing language specific or vague?
Phase 4: On-ground verification
For transactions that justify it, deploy on-ground verification before payment.
- Arrange an independent site visit
- Confirm the supplier operates where they claim
- Verify the material is present and consistent with the offer
- Require independent inspection or sampling oversight
- Obtain a written, dated report with photographic evidence
Phase 5: Decision
Before releasing funds, consolidate your findings and make a decision.
- Review all findings from phases 1–4
- Assess the aggregate risk level
- Consider whether any red flags remain unresolved
- If any check cannot be satisfactorily completed — do not proceed
- If all checks pass — proceed with appropriate payment protections (LC, escrow)
This checklist is the minimum verification a buyer should complete before committing capital. If any phase cannot be satisfactorily completed, do not proceed. The cost of verification is a fraction of the capital at risk.