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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Protecting natural resource contracts from national measures in Africa: some comparisons with the Australian experience
Author:Agyemang, Augustus AsanteISNI
Periodical:The Comparative and International Law Journal of Southern Africa
Geographic term:Africa
Subjects:foreign investments
Abstract:Exploitation of Africa's natural resources requires considerable investment and technological know-how, and investors often need guarantees to protect their investments from adverse measures taken by host States, who are mainly interested in issues of control over their economies, public welfare and political survival, rather than profitability and security of investment. Since independence, African States have been involved in many disputes with foreign investors, caused by national measures such as expropriation and indigenization, and the compensation to be paid to investors affected by such national measures. This article examines some of the devices traditionally employed in natural resource contracts and other agreements to protect such contracts from the national measures of African States. Their effectiveness in protecting investors is considered and comparisons are drawn with the Australian experience because, like most African States, Australia also imports capital to exploit most of its natural resources. The comparisons acknowledge the differences in the political and economic environments of Australia and Africa. The high incidence of economic and political instability in Africa has made it unattractive as a place to invest and has weakened the bargaining power of African States vis--vis foreign investors. Notes, ref.