African Continental Free Trade Area: Promises and Perils

Stemming from its diplomatic protection origin and citizen protectionist initiatives, the international investment law regime has witnessed several devolvement through the initiatives and actions of various States and continents.557 All these are geared towards achieving a better international economic order that will serve the interests of these countries. As capitalism and the boom in global trade and investments continues to drive Foreign Direct Investments (FDIs) around the world, several countries such as Ecuador and South Africa have shown commitments to ensure the reform of the international investment climate through the enactment of novel investment treaties. These enactments which are in response to the discontent over the operation and functionality of contemporary Bilateral Investment Treaties (BITs) and other International Investment Agreements (IIAs), evidences the strong willingness of these countries to be at the forefront of international investment law reform. Apart from these countries, regional blocs have also keyed into the reform agenda for a better investment law regime.561 Thus, African countries have continued to demonstrate this willingness to reforms through the recently agreed and signed African Continental Free Trade Area (AfCFTA) Agreement. The African Continental Free Trade Area, which will create one of the largest free trading blocs in the world, is designed to facilitate trade and by correlation, investment within the African continent. However, the probability of success of this new trade deal towards meeting up to the objectives underpinning its formulation remains a subject of debate.