State For Clarity: Investor – State Arbitration In Africa (Video)

High levels of political and economic instability in some African countries can often give rise to disputes between investors and the state when it comes to the development and operation of energy, mining and infrastructure projects across the continent. Expropriations, breaches of contract, the enactment of a new regulations (e.g. environmental, human rights, energy, tax, foreign exchange control laws) are all reasons why an investor might think about making a claim against an African state.

Investors can seek to mitigate disputes risks by structuring its investments in a way that benefits from investment protection, for example through bilateral investment treaties, which are usually backed by some form of dispute resolution mechanism. However, it is important to ensure the investment is structured appropriately so that the investor can indeed benefit from such treaty protection, for example by incorporating in a country that is covered by an investment treaty