Towards a regional investment dispute settlement system an African perspective

Abstract

Foreign investment was believed to have been fostered by states signing bilateral investment treaties (BITS) and multilateral investment treaties as a way of protecting investors. The proliferation of such agreements has been exponential over the past century. Unlike trade, the regulation of investment is largely fragmented as no comprehensive multilateral accord exists. International investment flows are protected by a disintegrated system of approximately 3328 international investment agreements (IIAs) and 300 free trade agreements (FTAs) with investment chapters. These agreements include binding provisions on the standards of protection for the foreign investors, such as national treatment, fair and equitable treatment, and liberal repatriation of funds. The most fundamental feature of IIAs is that investors can assert their rights against host counties directly before transnational arbitration tribunals.