AFAS Videos

Q: What is ADR? Answer by Dr Emilia Onyema

• ADR is the acronym for ‘Alternative Dispute Resolution’ processes.
• These are alternatives to adjudicative processes of litigation, arbitration and adjudication.
• ADR is generally classified into at least three types: negotiation, mediation, and conciliation.
• In negotiation, the disputing parties try to resolve their dispute by themselves. If this fails, they invite a third party neutral to assist them with resolving their dispute.
• This may be through mediation or conciliation which may be used interchangeably.
• In mediation, the third party neutral known as a mediator, facilitates or helps the parties find a solution to their dispute. The mediator does not impose a solution on the parties.
• In conciliation, the conciliator, is more actively engaged and may suggest solutions to the parties.

Q: What is ICSID? Answer by Dr Emilia Onyema

ICSID is the acronym for the International Centre for the Settlement of Investment Disputes which administers disputes similar to arbitration centres or institutions.

ICSID however is peculiar in several regards such as:

• It is established by Treaty: that is, the Convention on the Settlement of Investment Disputes between States and Nationals of other States concluded in Washington D.C., which came into force on 14 October 1966.
• This Convention was sponsored by the World Bank as a means of promoting the free flow of international investment globally.
• As at today (27 March 2019), ICSID has 154 contracting parties, 48 of which are African states.
• It administers investment disputes in accordance with Article 25 of the Convention either through arbitration, conciliation, and fact-finding. Each process has its own set of rules. Mediation is included in the 15 March 2019 published proposed ICSID amendments.
• ICSID disputes can be under the Convention or Additional Facility Proceedings.
• Parties can choose the neutrals, or these can be appointed by the Chairman of ICSID Administrative Council. However, only states can nominate arbitrators or conciliators onto the Panel lists.
• The ICSID system is described as closed because an ICSID award can only be challenged within the system through its annulment procedure (Article 52 ICSID Convention).
• ICSID member states undertake to enforce ICSID awards in accordance with Article 54 ICSID Convention.
• Finally, ICSID contributes to the development of international investment law through the publication of its cases and its ICSID Review-Foreign Investment Law Journal, published by OUP.
• ICSID website: icsid.worldbank.org

Q: What is Arbitration? Answer by Dr Emilia Onyema

• Arbitration is a private dispute resolution process.
• It is an alternative to litigation.
• It is different from mediation or conciliation.
• The arbitral tribunal determines the dispute between the parties.
• Arbitration terminates in an award which can be enforced by national courts.
• An award generally cannot be appealed but can be challenged on limited grounds.
• Arbitration can be ad hoc or under the arbitration rules of an institution.
• The foundation of commercial arbitration is the consent of the parties evidenced in the arbitration agreement.
• In most African countries, we also have the process of customary arbitration.
• Some subject matters are not arbitrable.
• The New York Convention on the recognition and enforcement of foreign arbitral awards.

Q: What does an arbitrator do? Answer by Funke Adekoya

• The arbitrator sets out the procedure which will allow each side to submit their evidence.
• The arbitrator gathers all the evidence from the claimant and the respondent.
• They will consider the complaint based only on the written claim and supporting evidence.
• If the case is complex and written evidence is not enough to decide the outcome, the arbitrator can meet with both parties to determine the process for obtaining further evidence.
• It is the duty of the arbitrators in international arbitration to be independent of the parties and in an unbiased way and in accordance with due process and the applicable lex arbitri and arbitration rules to make themselves acquainted with the facts of the case and the claims, allegations and defences of the parties and, within a reasonably short period of time, to make a reasoned award, based upon the applicable law, which fulfils the requirements for the award to be enforceable.
• The primary duty of arbitrators is to make sure that the Award is enforceable at law.

Q: What are IIAs? Answer by Dr Chrispas Nyombi

• An International Investment Agreement (IIA) is a type of treaty between countries that addresses issues relevant to cross-border investments, usually for the purpose of protection, promotion and liberalization of such investments.
• Most IIAs cover foreign direct investment (FDI) and portfolio investment, but some exclude the latter. Countries concluding IIAs commit themselves to adhere to specific standards on the treatment of foreign investments within their territory.
• IIAs further define procedures for the resolution of disputes should these commitments not be met. The most common types of IIAs are Bilateral Investment Treaties and Preferential Trade and Investment Agreements.
• Bilateral investment treaties deal primarily with the admission, treatment and protection of foreign investment. They usually cover investments by enterprises or individuals of one country in the territory of its treaty partner.
• Preferential Trade and Investment Agreements are treaties among countries on cooperation in economic and trade areas. Usually they cover a broader set of issues and are concluded at bilateral or regional levels. In order to classify as IIAs, PTIAs must include, among other content, specific provisions on foreign investment.
• International Taxation Agreements and Double Taxation Treaties are also considered as IIAs, as taxation commonly has an important impact on foreign investment.

Q: What is international investment arbitration? Answer by Dr Chrispas Nyombi

• It represents the settlement of international investment disputes between foreign investors and host States by arbitration.
• However, as there are different ways to institute arbitral proceedings, the structural and substantive aspects of international investment arbitration are coloured by the mode of commencement of arbitration.
• In investment contract arbitration, the legal basis for the arbitration is an arbitration clause in a contract which is binding on all contracting parties.
• In investment treaty arbitration, however, the legal basis for arbitration is a binding offer in a treaty clause by a host State to arbitrate with all protected investors, which any protected investor is then free to accept or reject. For this reason, the latter has been referred to as “arbitration without privity,”.
• There is also a third category of consent to investment arbitration by acceptance of a unilateral offer of a State through domestic investment laws.
• Many investment treaties also record an agreement between the Contracting States to arbitrate disputes arising from the interpretation or application of the treaty.
• Investment treaty arbitration encompasses investor-State arbitration, which may have a variety of legal bases, and also State-to-State arbitration.

Q: Que fait un Médiateur? Répondre par Thierry Ngoga

Avant de parler de ce que fait le Médiateur, Que ce qu’est la médiation?

La médiation est l’un des mécanismes de règlement extrajudiciaire des différends. Il s’agit d’un processus consensuel, fondé sur l’autodétermination, qui implique que les parties en conflit font intervenir une tierce partie impartiale pour aboutir à une solution à leur différend. Cette solution aux différends offre donc un résultat « gagnant-gagnant »

Alors, qui est un médiateur?

Un médiateur est un intermédiaire qui utilisera différentes techniques pour placer les parties dans la meilleure position possible pour trouver un règlement acceptable. Cela peut inclure poser des questions, transmettre des offres et présider des réunions communes des parties.

Que fait un médiateur?

• Le médiateur assiste et guide les parties vers leur propre résolution du différend. Le médiateur ne décide pas du résultat, mais aide les parties à comprendre et à se concentrer sur les problèmes nécessaires à la résolution du différend.
• Le rôle du médiateur est unique car il est totalement neutre et impartial. Cette neutralité offre aux deux parties la possibilité d’examiner leurs revendications dans un environnement confidentiel.

Les fonctions du médiateur incluent entre autres:

• Mener une médiation de manière juste, impartiale et en toute confidentialité.
• Refuser ou renoncer à une médiation si le médiateur ne peut rester impartial et de rappeler les parties que c’est à elles de décider si l’affaire est conclue ou non lors de la médiation.

Q: What does a mediator do? Answer by Thierry Ngoga

• An intermediary who will use different techniques to put the parties in the best position possible to find a settlement that is acceptable. This can include asking questions, conveying offers and conducting and chairing joint meetings.
• The mediator assists and guides the parties toward their own resolution. The mediator does not decide the outcome, but helps the parties understand and focus on the important issues needed to reach a resolution.
• The role of the mediator is unique being completely neutral and impartial. This neutrality gives both parties the opportunity to consider their claims in a confidential environment knowing that what is discussed will not be passed on to the other side without their express consent.
• The mediation is conducted on a without prejudice basis and any agreement reached is non-binding until such a time as both parties sign a settlement agreement.

Q: What is the role of counsel in arbitration? Answer by Tayeb Hassabo

• Under most national arbitration statutes and institutional arbitration rules, parties are given the right to choose whether they wish to be represented by external counsel or would rather represent themselves (pro se parties).
• Sometimes parties opt to represent themselves in arbitration proceedings rather than retaining external counsel. That is especially likely in disputes involving primarily technical issues (such as commodities disputes, smaller construction matters, and some financial matters).
• Nonetheless, in the vast majority of substantial international commercial and investment arbitrations, parties retain external legal counsel, usually counsel with expertise in arbitration as representatives.
• Whether the parties are pro se or represented by lawyers, the equality of arms may be affected due to different degrees of expertise, willingness or ability to commit resources.
• A pro se party may not fully understand the arbitration process or the substantive legal issues which are in dispute, putting that party in a less advantageous position when it comes to effective presentation of its case.
• The same result may follow where a party retains external counsel, but limits the resources available for case presentation, either through budgetary, staffing or other limitations, or selects less-experienced, but less-expensive, counsel.
• In interstate and investment arbitration, state parties not infrequently choose to proceed without external counsel, or with limited involvement of external counsel, often for exactly these reasons.

Q: What do parties want from arbitration? Answer by Xander Meise

• An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is similar to a judgment in a court of law.
• It is referred to as an award even where all of the claimant’s claims fail (and thus no money needs to be paid by either party), or the award is of a non-monetary nature.
• Although arbitration awards are characteristically an award of damages against a party, tribunals usually have a range of remedies that can form a part of the award.
• The tribunal may order the payment of a sum of money (conventional damages).
• The tribunal may make a declaration as to any matter to be determined in the proceedings.
• Arbitration is particularly popular as a means of dispute resolution in the commercial sphere. One of the reasons for doing so is that, in international trade, it is often easier to enforce an arbitration award in a foreign country than it is to enforce a judgment of the court.
• Under the New York Convention 1958, an award issued in a contracting state can generally be freely enforced in any other contracting state, only subject to certain, limited defences.

Those defences are:

• a party to the arbitration agreement was, under the law applicable to him, under some incapacity, or the arbitration agreement was not valid under its governing law;
• a party was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings, or was otherwise unable to present its case;
• the award deals with an issue not contemplated by or not falling within the terms of the submission to arbitration, or contains matters beyond the scope of the arbitration (subject to the proviso that an award which contains decisions on such matters may be enforced to the extent that it contains decisions on matters submitted to arbitration which can be separated from those matters not so submitted);
• the composition of the arbitral authority was not in accordance with the agreement of the parties or, failing such agreement, with the law of the place where the hearing took place (the lex loci arbitri);
• the award has not yet become binding upon the parties, or has been set aside or suspended by a competent authority, either in the country where the arbitration took place, or pursuant to the law of the arbitration agreement;
• the subject matter of the award was not capable of resolution by arbitration; or
• enforcement would be contrary to public policy.

Q: What does an arbitration centre do? Answer by Ismail Selim

• An arbitration centre is a specialised institution that takes on the role of administering the arbitration process.
• Each institution has its own set of rules which provide a framework for the arbitration, and its own form of administration to assist in the process.
• Some common institutions are the London Court of International Arbitration (LCIA) and the International Chamber of Commerce (ICC).
• Often the contract between two parties will contain an arbitration clause which will designate a particular institution as the arbitration administrator.

The most important advantages are:

• The availability of pre-established rules and procedures which ensure the arbitration proceedings begin in a timely manner;
• Administrative assistance from the institution, which will provide a secretariat or court of arbitration;
• A list of qualified arbitrators to choose from;
• Assistance in encouraging reluctant parties to proceed with arbitration; and
• An established format with a proven record.
• Institutional arbitration saves parties and their lawyers the effort of determining the arbitration procedure and of drafting an arbitration clause, which is provided by the institution.
• An institution’s panel of arbitrators will usually be made up of experts from various regions of the world and include many different vocations. This allows parties to select an arbitrator possessing the necessary skill, experience and expertise to provide a quick and effective dispute resolution process.

Q: Comment est-ce qu’on démarre une procédure d’arbitrage? Answer by Tsegaye Laurendeau

• L’arbitrage est un mode consensuel de règlement des litiges.
  • Il faut que les parties soient d’accord pour soumettre leur différend à l’arbitrage.
• Il conviendra donc de vérifier que le contrat donnant lieu au différend contient un clause d’arbitrage.
• En l’absence d’une clause d’arbitrage, l’arbitrage sera toujours possible dans la mesure où les parties arrivent à se mettre d’accord après la naissance du litige – ce qu’on appelle le compris d’arbitrage.
• Pour pouvoir formellement commencer l’arbitrage, la partie demanderesse devra soumettre une demande ou requête d’arbitrage.
• La demande d’arbitrage est soumise à la partie défenderesse et au centre d’arbitrage compétent en présence d’un arbitrage institutionnel, et uniquement à la partie défenderesse lorsque l’arbitrage est ad hoc.
• Le contenu de la demande d’arbitrage et les démarches précises à suivre sont indiquées dans le règlement d’arbitrage de l’institution d’arbitrage compétente.
• Il est important de s’assurer que les différentes conditions prévues dans le règlement d’arbitrage, et éventuellement par la loi du siège de l’arbitrage, soient satisfaites afin d’éviter les mauvaises surprises.
  • Une demande d’arbitrage inopérante ne sera peut-être pas en mesure d’interrompra le délai de prescription de l’action – la conséquence étant que la demande ne sera plus recevable:
  • Une demande d’arbitrage inopérante est également susceptible de priver le tribunal arbitral de sa compétence, entièrement ou partiellement.
• Il y a un certain nombre de points – qui peuvent paraitre évidents – qu’il est important de vérifier ou de garder en tête avant de commencer un arbitrage:
  • Quel arbitre veut nommer la partie demanderesse? Certains règlements d’arbitrage, comme le règlement CCI, imposent d’indiquer le nom de l’arbitre dans la demande d’arbitrage.
    • C’est une décision importante car la partie devra “vivre” avec cet arbitre durant tout l’arbitrage.
    • Celui-ci aura aussi probablement un rôle important dans la désignation du président du tribunal arbitral.
  • Il faut s’assurer que la demande d’arbitrage désigne tous les défendeurs en cause et les identifie avec précision.
    • Un travail approximatif à cet égard pourra devenir une source de complications s’agissant de la recevabilité des demandes, des dommages et réparations auxquels peut prétendre la partie demanderesse ou de l’exécution de la sentence arbitrale.
    • Par ailleurs, il sera peut-être nécessaire ultérieurement d’obtenir l’accord de la partie adverse et/ou du tribunal et/ou de l’institution arbitrale pour joindre de nouvelles parties ou pour consolider des procédures liées.
  • S’assurer que les conditions préalables au commencement de l’arbitrage ont été satisfaites, notamment: négociations ou procédure de médiation; épuisement de certains recours, par ex. devant une autorité de régulation ou une juridiction étatique.
    • Ces conditions figureront normalement dans la clause d’arbitrage mais il conviendra de s’assurer qu’il n’existe pas de sources supplémentaires.

Q: How should international investment arbitration be reformed? Answer by Dr Chrispas Nyombi

A range of international reform processes have commenced in order to redress critiques of Investor-State Dispute Settlement. The most prominent occurring within UNCITRAL’s Working Group III. Six issues have triggered criticism of ISDS: (1) legal costs; (2) duration of proceedings; (3) legal consistency; (4) decisional correctness; (5) arbitral diversity; and (6) arbitral independence and impartiality.

Nineteen of the 29 international investment agreements concluded in 2018 carefully regulate ISDS, and four omit it.

First and foremost, some treaties do not entitle investors to refer their disputes with the host State to international arbitration. Either ISDS is not covered at all or it is subject to the State’s right to give or withhold arbitration consent for each specific dispute, in the form of the so-called “case-by-case consent” For example, Brazil.

Secondly, some treaties replace the system of ad hoc investor–State arbitration and party appointments with a standing court-like tribunal (including an appellate level), with members appointed by contracting parties for a fixed term. For example, the European Union.

Thirdly, some treaties include a requirement to exhaust local judicial remedies (or to litigate in local courts for a prolonged period) before turning to arbitration. Others narrow the scope of ISDS subject matter (by limiting treaty provisions subject to ISDS, excluding policy areas from the ISDS scope and setting a time limit for submitting ISDS claims). For example, India.

Last but not least, some treaties preserve the system of investor–State arbitration but with certain important modifications. Such modifications aim at increasing State control over the proceedings, opening proceedings to the public and third parties, enhancing the suitability and impartiality of arbitrators, or limiting the remedial powers of ISDS tribunals.

However, different approaches to ISDS reform, ranging from traditional ad hoc tribunals to a standing court or to no ISDS, make the IIA regime less homogenous and create broader systemic complexity. I therefore believe that holistic and synchronised reform through an inclusive and transparent process is the best way forward.

Q: How are the New Generation BITs different from the old-style Model BITs? Answer by Eunice Shang-Simpson

The wording of the old-style Model BITs were usually put forward by the Western States and adopted totally by host States, who were usually developing nations. Arbitral proceedings under the auspices of BITs are commenced at the instigation of the Investor. The core protections were:

• Fair and equitable treatment;
• Full protection and security;
• No arbitrary or discriminatory measures impairing the investment;
• No expropriation without prompt, adequate and effective compensation and
• National and ‘most favoured nation’ treatment.

It is therefore clear that investors had a wide range of protections under BITs. The frequency with which these protections were upheld to the detriment of host States resulted in a backlash, with some host States deciding to leave the system whereas others decided to remain but utilise a range of options aimed at redressing the balance and reasserting their control over investment treaty arbitration. This led to the emergence of the new generation BITs.

These new generation BITs include some or all of these clauses –

• Qualifications for initiating investor-state arbitration;
• Requiring the exhaustion of local administrative or judicial remedies as a condition of their consent to arbitration;
• Denial-of-benefits – unless the investor has substantial business interests in the host State;
• Costs-shifting provisions for cases without merit;
• Sustainable Development;
• Defined Standards of treatment;
• Innovative Dispute Resolution systems;
• Transparency and
• Regulatory Space.

It is therefore clear that the new-style BITs aim to strike a balance between investor protection and State Sovereignty. In particular, the inclusion of regulatory discretion seems to be aimed at addressing the tension between an investor’s legitimate expectations of stability of the legal framework in a host State and the host State’s right to determine its own legal and economic order.

It will be interesting to see how far new-style BITs go in this direction.

Q: Que sont les Accords d’Investissement International (AII)? Answer by Rose Rameau

Un accord d’investissement international (AII) est une sorte de traité entre pays qui traite de questions relatives aux investissements transfrontaliers, généralement dans un but de protection, de promotion et de libéralisation de ces investissements.

La plupart des accords internationaux d’investissement couvrent les investissements directs étrangers (IDE) et les investissements de portefeuille, mais certains excluent ces derniers. Les pays qui concluent des accords internationaux d’investissement s’engagent à se conformer à des normes spécifiques concernant le traitement des investissements étrangers sur leur territoire

Les AII définissent en outre les procédures de résolution des litiges si ces engagements ne sont pas respectés. Les types les plus courants d’AII sont les traités bilatéraux d’investissement et les accords préférentiels de commerce et d’investissement.

Les accords internationaux sur la fiscalité et les conventions de double imposition sont également considérés comme des AII, car la fiscalité a généralement un impact important sur les investissements étrangers.

Par exemple, les traités bilatéraux d’investissement traitent principalement de l’admission, du
traitement et de la protection des investissements étrangers. Ils couvrent généralement les investissements d’entreprises ou de particuliers d’un pays sur le territoire de son partenaire conventionnel.

Q: Dites-nous en quoi les Traités Bilatéraux Internationaux (TBI) contribuent-ils à l’afflux d’investissements directs étrangers dans un pays? Answer by Rose Rameau

S’interroger sur cette problématique sous-entend que les TBI sont des instruments utils pour les pays en développement alors qu’en réalité, des recherches ont montré que la circonstance qu’un pays ait signé des TBI ne signifie pas que ledit pays verra une augmentation de ses investissements directs étrangers.

La vérité est que de nombreux pays en développement, parmi lesquels des États africains, ont été amenés à croire que s’ils signaient des TBI, les investisseurs iraient au-delà de ce qu’ils investiraient dans leur propre pays, ce qui n’est clairement pas le cas.

Ce que nous savons à présent, c’est que dans le cadre de la résolution de ces litiges sur le fondement des TBI, les États africains sont condamnés à payer d’énormes indemnités, au point que de nombreux États en développement ont tenté de se retirer des traités TBI ou ont décidé de ne plus les signer.

Nous constatons les frustrations de nombreux États africains car, depuis trois ans, la CNUDCI a créé le Groupe de Travail III chargé d’examiner les réformes de l’Investor State Dispute Settlement (ISDS).

La question est de savoir si nous essayons de mettre en œuvre ce que nous avons ou s’il serait préférable de nous en débarrasser et de revenir à notre ancien système selon lequel les tribunaux nationaux ont à connaître des questions d’investissement ou même s’il serait préférable de créer une cour d’appel chargée d’examiner ces décisions importantes afin que les États aient le sentiment qu’ils sont bien entendus.

Le Groupe de Travail III est toujours à la recherche et il sera très intéressant de voir ce qu’il propose en tant que groupe. Je tiens à souligner que j’étais à Vienne pour assister à la 52e session de la CNUDCI et j’ai bien observé les délibérations de la Commission lors de la session. Les travaux du Groupe de Travail III ont été bien accueillis par tous les délégués et de nombreux pays en développement ont déployé des efforts importants pour être présents afin que leurs problèmes puissent être résolus.

J’espère sincèrement qu’ensemble, ils trouveront une solution pour réformer le système actuel ou pour abandonner le navire.

Q: Why do parties choose Arbitration? Answer by Adebolanle Adebola

Assume you had a company in Ghana, wishing to export cocoa to a company in Switzerland who wishes to process this into high value chocolate. One of the very first questions that they ask is, ‘how will disputes that arise between these two parties in the course of their transaction be resolved?’ Would the Ghanaian company wish to go to Switzerland, or would the Swiss company be willing to submit itself to the jurisdiction of the Ghanaian courts?

Well, international commercial arbitration offers them an alternative. And increasingly we have found that commercial parties prefer to resolve their disputes through international commercial arbitration for two principal reasons. 90% of parties that were asked by an international survey said that the enforcement of awards is one of the key reasons why they prefer international commercial arbitration. Enforcement of awards is regulated by the Convention on the Recognition and Enforcement of International Awards which was put in place in 1958. That enjoins countries to recognise awards that have been made in jurisdictions outside of their own, as well as to recognise the intention of the parties to resolve their disputes as evidenced by their arbitration agreement. Another key reason why parties choose international commercial arbitration is because of neutrality: the neutrality of the place of arbitration, the neutrality of the arbitrators, as well as the neutrality of the framework of laws that regulate the proceedings between them.

Q: Why study international arbitration? Answer by Prof Paul Obo Idornigie

My name is Professor Paul Idornigie. I am going to answer the question, “why study international arbitration?

Generally arbitration is either national or international. With globalisation, any arbitrator that wants to be competitive internationally should study international arbitration.

The question often asked then is, when is an arbitration international? Now, we look at the nature of the dispute or the nationality of the parties or where the contract is to be performed or where the contract is entered into. Where the parties to the contract are in different countries, an arbitration can be said to be international.

When an arbitration is international, which law governs it? This is a matter that the parties should agree but generally, they do not. Conflict of laws rules are deployed to determine the governing law of the contract. What makes this a bit pronounced is that in a particular international arbitration, you can have as many as five laws applying to it. You can have the law that determines the nationality of the parties; the law that regulates the contract itself; the law that regulates the arbitration clause; the law of the place of arbitration and; the law of the place of enforcement.

All these must be studied for an arbitrator to be an effective arbitrator internationally. Thank you very much.

Q: Why do States sign bilateral investment treaties? Answer by Prof. Dr. Mohamed Abdel Wahab

يطيب لي أن أجيب على التساؤل الخاص بـ “لماذا تقوم الدول بإبرام اتفاقيات استثمار ثنائية؟”. مما لا شك فيه أن تشجيع الاستثمار الجاد والاستثمار الأجنبي يخلق مجالاُ خصباً لتنامي الاقتصاد الوطني في إطار مبدأ سيادة القانون. وتأتي هذه الاتفاقيات محددة لمجموعة من الحقوق والالتزامات المتبادلة بين المستثمرين والدول المضيفة للاستثمار وبين الدول الموقِعة على اتفاقيات الاستثمار ذاتها. وإن كان الهدف من إبرام هذه الاتفاقيات هو تشجيع وترويج الاستثمار الأجنبي في الدولة المضيف للاستثمار، إلا أن الأمر لا يقتصر على محض إبرام هذه الاتفاقيات بل يستلزم توافر مناخ استثماري ملائم من خلال بيئة تشريعية واقتصادية وسياسية واجتماعية تشجع الاستثمار الجاد. وبالتالي، وإن كانت اتفاقيات الاستثمار الثنائية تهدف إلى تحفيز وتشجيع الاستثمار، إلا أن أهميتها أيضاً تكمن في أنها تضع الإطار العام الملائم لتحديد الحقوق والالتزامات المتبادلة للمستثمرين وأيضاً الدول المضيفة للاستثمار في إطار يكفل مصالح كلا الطرفين في هذا الصدد، المستثمرين والدول المضيفة للاستثمار على حد سواء.

I am recording this video to address a specific question related to why states sign BITs “Bilateral Investment Treaties”. In a nutshell, BITs or IIAs “International Investment Agreements” are normally entered into by states with the purpose and the aim of encouraging, promoting and incentivizing foreign direct investment. So states conclude these treaties and agreements in hope that this would provide a more conducive, protective and supportive environment to foreign investments from the states which investors hold their nationalities. Of course when states sign these agreements, with this goal of incentivizing investments, the idea is that these agreements will help proliferate and increase investments in the host state. This may not always be the case, because it depends on the legislative, economic, political and even sociocultural framework of these specific states. Nevertheless, these BITs do help states and investors, at least devise a regulatory framework for the rights and obligations that investors and states would enjoy under the specific BITs negotiated and agreed between states.

Q: Why is the African Continental Free Trade Area Agreement (AfCFTA) important? Answer by Bobby Banson

Good morning ladies and gentlemen. My name is Bobby Banson. I am the Managing Partner of Robert Smith and Adelaide law, which is based in Accra. Accra has been selected as the host or as the city to host the secretariat of the African Continental Free Trade Agreement. This is an agreement that has been signed by fifty two (52) Countries in Africa. What it means is that it will allow free movement of goods and services across the African continent, albeit progressively.

Why is it necessary?

Currently the intra continent trade among African countries is about eighteen percent (18%). With the passage and implementation of the agreement and its protocols, the trade volume between member states is expected to increase to fifty two percent (52%) by 2020. What it means is that a small company in Comoros would be able to access a market in Nigeria and a company in Nigeria will be able to source for raw materials in a country like Kenya. It will boost development and sustainable growth. It is going to ensure that there is employment because of industrialization.

Criticism

The fear shown by a lot of people against this Free Trade Agreement is because they think that there would be anti-competitive activities by bigger companies from other countries which will end up destroying local industries.
But the agreement makes room and allow, per its protocols, country to be able to come up with measures and policies that will preserve its local industries as long as these measures and policies are not discriminatory, they are fair and they align with the general spirit of the agreement.

Conclusion

So let us all welcome the agreement. Let us make sure that we implement the agreement and the protocols and I believe just as it has done to the EU and the World Trade Organization, the African Continental Free Trade Agreement is going to boost industrialization, boost employment and make sure the African counties are able to trade amongst themselves in terms of goods and services which will lead to the development of all member states.
Thank you very much for your time.

Q: Why should international investment arbitration be reformed? لماذا يجب تعديل التحكيم الدولي للاستثمار؟ Answer by Sally Al-Salwah

:هناك العديد من الأسباب منها الأسباب الخمسة التالية

• عدم محاسبة المحكمين لعدم خضوعهم لسلطة الدولة الرقابية على عكس السلطة الرقابية التي يخضع لها القضاة في المحاكم الوطنية.
  • ينشأ عن ذلك تساؤل حول مدى أخذ المحكمين في اعتبارهم للآثار السلبية التي قد تنتج عن إصدارهم أحكام ضد الدولة على المواطن العادي و بشكل غير مباشر على الدول الأخرى.
• التناقض في أحكام التحكيم عند تفسير التزامات الدولة المضيفة نحو المستثمر مما يؤدي إلى وجود غموض حول نطاق التزامات الدول المضيفة نحو المستثمر.
  • ويرجع ذلك في الواقع لتعدد المصطلحات والمفردات المستخدمة في اتفاقيات التعاون وتشجيع الاستثمار عند تقرير الحوافز والامتيازات التي تمنحها الدول المضيفة للمستثمرين.
• “الجمود التشريعي” أو ما يسمى ب”الأثر السلبي” لأحكام التحكيم في قضايا الاستثمار على السياسات التشريعية للدولة المضيفة وعدول الدولة عن إجراء التعديلات التشريعية اللازمة لتحقيق المصلحة العامة تحسبا وتخوفا من لجوء المستثمر للتحكيم مع احتمال دفع تعويضات طائلة على أثر ذلك.
• عدم فرض معظم اتفاقيات التعاون وتشجيع الاستثمار التزامات على عاتق المستثمرين وقسر تلك الالتزامات على الدولة فقط مما يجعلها تشعر بأن تلك الاتفاقيات أحادية الجانب سنت لصالح المستثمر على حساب الدولة.
• عدم منح معظم اتفاقيات التعاون وتشجيع الاستثمار الدولة المضيفة حق رفع دعاوى أساسية أو دعاوى فرعية وتقديم طلبات مقابلة ضد المستثمر عند إخلال هذا الأخير بالتزاماته نحو الدولة.

Q: Why is it important to have a Judiciary that is supportive of Arbitration in Africa? Answer by Jimmy Muyanja

1. It must never be doubted that the African judiciary sees arbitration as an incident of international law which opens up municipal court systems to serve the international community.
2. The African judiciary must guarantee the international understanding that an arbitration agreement is a special contract enforceable within the context of the governing law, the spirit of the arbitration clause and no more.
3. All African legislation defines the limited oversight courts have over the arbitration process. Critically the African judiciary must remain steadfast to this ideal.
4. Worldwide judiciary staffing is not proportionate to the triple tsunami of increased legislation, annual increase of licensed advocates and increased civic transactions. It is against this background that African courts ought to look to the economic benefit of Arbitrators as an auxiliary force to the judiciary, who help stem the case backlog tide.
5. Well thought out African judiciary precedents, will comfort the international community expectations and guarantee contribution of African courts to international arbitration jurisprudence.
6. The African judiciary owes the world specialized arbitration trained judges and a fast track arbitration review process, when contrasted with run of the mill litigation.
7. Only a supportive African judiciary will empower counsel to choose the municipal African arbitration law as the governing law or designate African hearing venues. This creates the enabling environment where both the municipal court and counsel are exposed to international arbitration practice, whilst reversing the case export phenomena which flourishes on the premise that African courts are not supportive of the arbitration process.

Q: Why is diversity an emerging issue in international arbitration? Answer by Duncan Bagshaw

Q: Why is the Pan-African Investment Code important? Answer by Prof. Makane Mbengue