Foreign Direct Investment (FDI)

Nigeria, in recognition of the varying economic, political, environmental and social dangers posed by the over reliance on carbon based forms of energy, has started to turn to the idea of decarbonisation. However, this process can be difficult to attain, because of conflict between the different actors in an energy system. When unresolved or improperly managed, such conflicts can delay / derail decarbonisation initiatives and could scare away Foreign Direct Investment (FDI) which has proven crucial in driving decarbonisation initiatives in emerging markets such as Nigeria.

Sub-regional judiciaries and implementing bodies in Africa should endeavour to avoid what the Kagame Report termed ‘[t]he chronic failure to see through African Union decisions [which] has resulted in a crisis of implementation.’ Hence, ECOWAS and the ECCJ should apply political pressure on Member States to implement the ECCJ judgments. Also, dualist countries in the sub-region should domesticate the Revised Treaty and the Protocol on the ECCJ into their national laws. This will enhance the implementation of the ECCJ decisions in the sub-region.

A coordinated African voice on FDI would likely enhance the continent’s global competitiveness, prevent destructive competition among countries, help strengthen Africa’s position in investment agreements, and ultimately result in increased FDI flows to the continent.

The draft Pan-African Investment Code (PAIC) or (Code) was released in 2015 with the objective of fostering cross-border investment flows in Africa. While the draft code currently serves as “guiding instrument”, it remains a valuable blueprint for solving the long-standing investment problems plaguing the region. It is therefore imperative that African countries hasten their efforts to ensure its implementation as a binding treaty document. The decision to develop the Code was welcomed by experts as an opportunity to create a binding legal framework to oversee Africa’s industrial and structural transformation. The Code was also expected to balance the lopsided nature of the relationship between investors’ rights and host states’ obligations.