Economic Development

Attracting foreign investment while holding transnational corporations to account for any human rights transgressions is by no means an easy feat. It will require that a careful balance be struck between the interests of the host State and its people, and that of private actors expecting good risk-return ratios in pursuit of the bottom line. Although international mechanisms such as the United Nations Committee on Economic, Social and Cultural Rights have long endorsed accountability for transnational corporations, a zero draft international convention to regulate this issue has only recently been developed.

Upon improving its infrastructure, Nigeria could very easily leverage its economic base in distributing its products within Africa and internationally. This is already the case in its ‘soft’ products, such as the Nigerian film and music industry, which has seeped into all nooks of African continent, and is largely received internationally. This can be replicated in other aspects, once the foundation is properly laid internally.

There is a feeling that the next decade will be a watershed period in terms of the economic relations between the EU and Africa. Both continents are experiencing sweeping developments that will invariably affect their respective existence and mutual relationships. In Africa, the largest preferential trade area, the African Continental Free Trade Area (AfCFTA), has recently been ratified while in Europe, the EU is navigating the challenges of Brexit. All this is taking place in the backdrop of negotiations between the two blocs to replace the Cotonou Agreement which has since 2000 served as the bedrock of economic relations between the EU and ACP states. How, then, will the Africa-EU relationship be impacted – if at all – by the implementation of AfCFTA?

Jonathan Bashi Rudahindwa’s monograph on regionalism in Africa is a timely addition to the literature on the topic. His focus is primarily on the creation of the African Economic Community (AEC). Created by treaty in 1991 the AEC lays down a path for Africa to follow towards the creation of an African common market. This is to be done in stages culminating in an economic and monetary union.  The AEC thus seems to be a critical landmark in the evolution towards African economic unification.

The book provides a study of regionalism in the context of Africa and investigates the various ways in which law can be used to address the particular issues raised by regional schemes across the continent. Given the relatively slow pace and the apparent failure which seem to have characterised regional initiatives in Africa to date, this study is intended to contribute to the search for effective methods to ensure the success of those initiatives. This is conducted through the contemplation of the role that law can play to help achieve the various objectives assigned to regional schemes in the context of the Treaty of Abuja.

Regional agreements and caselaw are studied, and books by African scholars are on the recommended reading list. Approximately seventy students are registered for L583 in any given year. It runs over two semesters (August - May). I did the course as an undergraduate student at the university. I then went on to specialise in IEL in my graduate studies. Doing further research on IEL, as well as attending conferences and trainings, assisted to continually update my knowledge so that I could improve my teaching.

In this blog post I will consider policy initiatives for tackling the issue of illicit flow of funds out of African countries and the implications of these activities on investment and trade in the context of the AfCFTA. Combating Illicit Financial Flows has been a difficult task for African countries and, the best approach to tackle this endemic problem may be to develop and implement comprehensive mechanisms that will encourage the disclosure of these illegal activities in a timely manner. Such disclosure can best be realized by the adoption of a regional whistleblower protection directive.

Developmental statism differs from the R4I model insofar as the economic activities of foreign state firms, as opposed to local state firms, drive R4I dealings. This should concern policy makers because of what an externally driven agenda implies for the long-term development of host states.

For the AfCFTA to succeed will require more than its regulatory framework; a supporting framework is also required and this is found in what Douglass North has termed “mental models”. Mental models are the necessary norms and beliefs of policy makers - their perceptions of the world around them.

The present report entitled “Special Economic Zones: Emerging Frontiers for Industrial Growth” covers the period of January – March 2019. The Report is divided into sections that provide important updates on the current steps being taken by the Federal Ministry of Industry, Trade & Investment (FMITI) and the Federal Government of Nigeria (FGN) in thematic areas that include: trade and trade policy, SMEs, investment, industry, the African Continental Free Trade Area Agreement (AfCFTA) and general news update.