Africa and investor-state dispute settlement: Mixed reactions, uncertainties and the way forward

Abstract

ABSTRACT Investor-state dispute settlement (ISDS) is a legal mechanism that allows foreign investors access to a supposedly neutral dispute resolution forum other than the court system of the host country in which the dispute arose. Globally, ISDS resolution mechanisms are currently confronted with unprecedented levels of scrutiny, and the system’s legitimacy is being questioned by both developed and developing countries alike. In Africa, criticisms of ISDS and the actual benefits of investment agreements for developing country host nations have informed recent collective efforts to shape dispute resolution mechanisms provided for in continental, regional and bilateral investment agreements. In light of these developments, this paper examines the contemporary international law regime in Africa and the ISDS mechanisms that are put in place by such an investment framework from the global, continental, regional and bilateral perspectives. It argues that African countries should not abandon ISDS, and provides recommendations on the way forward.