High levels of political and economic instability in some African countries
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 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.
Investment protection and mitigating dispute risks
Investors can seek to mitigate dispute risks by structuring their 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 – and incorporating in a way that complies with the terms of that treaty.
Provisions of investment treaties
In the event that an investor does need to make a claim, the first step is to check the provisions of the relevant investment treaty. Most treaties are likely to meet similar standards, for example by offering protection against unlawful expropriation without payment of compensation or by guaranteeing the physical security of the asset in the event of conflict. However, some of the wording contained within these provisions might be open to interpretation, such as the guarantee of “fair and equitable” treatment or “non-discrimination”.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.14: Enhance policy coherence for sustainable development | No specific indicators mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 16: Peace, Justice, and Strong Institutions
- SDG 17: Partnerships for the Goals
The issues highlighted in the article, such as disputes between investors and African states in energy, mining, and infrastructure projects, are connected to SDG 16, which focuses on promoting peace, justice, and strong institutions. The article discusses the need for investment protection and dispute resolution mechanisms to mitigate risks. Additionally, SDG 17, which emphasizes partnerships for sustainable development, is relevant as it highlights the importance of policy coherence.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all
- Target 17.14: Enhance policy coherence for sustainable development
Based on the article’s content, the specific targets that can be identified are Target 16.3, which emphasizes promoting the rule of law and ensuring equal access to justice, and Target 17.14, which focuses on enhancing policy coherence for sustainable development.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets. The article provides general information about the issues and the need for investment protection and policy coherence but does not mention any specific indicators.
Overall, the article highlights the importance of addressing disputes between investors and African states in energy, mining, and infrastructure projects, and emphasizes the need for investment protection and policy coherence for sustainable development. However, it does not provide specific indicators to measure progress towards the identified targets.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.14: Enhance policy coherence for sustainable development | No specific indicators mentioned in the article |
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Fuente: nortonrosefulbright.com
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