THE PROTECTION OF INVESTMENT IN AFRICA UNDER INTERNATIONAL LAW

Abstract

This Paper examines the essence of protection of investment in Africa under International law. International law does not operate in an abstract realm. International law comes into play when two states or other subjects of International law interact. In this context, these interactions occur in the spheres of International trade and Foreign Direct Investment (International Investment). Foreign Direct Investment benefits both the host and the foreign country. Hence, they both need protection. In Its preamble, the World Bank acknowledges this fact and provides for the guidelines on the Treatment of Foreign Direct Investment, it states;

“That a greater flow of foreign direct investment brings substantial benefits to bear on the world economy and on the economies of developing countries in particular, in terms of improving the long term efficiency of the host country through greater competition, transfer of capital, technology and managerial skills and enhancement of market access and in term as of expansion of international trade”

There are standards of treatment guaranteed by international law on protection of Foreign Direct investments. The standards are popularly known as “Minimum Standards” that’s comes in two categories; namely; Non-Discrimination Standards and Fair and Equitable Treatment. In attempting to examine these, the paper will take into consideration the fact that, Sources of International Investment law include, principles of general international law, Treaties, BITs, Chapters of Free Trade Areas (Investment Chapters), Regional Investment Agreements, Case law and national investment legislation.

The paper will further, give a critique on the above and have a word on the challenges faced by developing countries, which most of them are African states as far as applicability of these standards of treatment is concerned.