The importance of Bilateral Investment Treaties in relation to the protection and promotion of investment in Africa

Abstract

There is a growing concern around new patterns of negotiating international investment agreements vis-a-vis the recent withdrawals from Bilateral Investment Treaties (BITs) by developing countries. In recent times, the decision by a number of countries withdrawing their BITs with their investment partners raises questions to whether this investment instrument remains relevant in international investment discourse, 1or simply creates a gap to be exploited by larger entities or economies. The emergence of BITs became increasingly important within the framework of International Investment Law when emerging nations acceded to be members of the international community after World War II.2 Literature contends that emerging nations had little evidence to show that BITs have stimulated additional investments in developing countries, let alone revitalised domestic reforms during this era.3 Seemingly, these conditions are not peculiar to certain countries but cut across geographical regions.