This study is an investigation of the bilateral investment treaties (BITs) involving Member States of the East African Community (EAC) + the Republics of Burundi (“Burundi”), Kenya, Rwanda, South Sudan, the United Republic of Tanzania (“Tanzania”), and the Republic of Uganda (“Uganda”). The study is carried out against the backdrop of the legitimacy crisis in international investment law in general and specifically investment treaty arbitration that exposes countries to considerable political, diplomatic, legal, financial and economic risks arising out of international trade or investment agreements.
Foreign investment plays a critical role as an engine of economic growth in EAC economies. However, there is a growing realization that international investment policies can encroach on national government policy space and can undermine sustainable development goals (SGDs). Consequently, while acknowledging that investment policies should provide legal certainty and protection to investors and their investments, there is a growing consensus that ultimately investment policies should be “aimed at fostering investment, consistent with the objectives of sustainable development and inclusive growth.”
The study examines the provisions of the BITs involving EAC countries and analyses the extent to which these agreements are designed to advance SDGs and achieve an overall balance of rights and obligations as between EAC Members and investors. EAC economies recognize the importance of investments for the growth and development of the EAC region and the need to promote an attractive investment climate and expand investments for long-term development. However, given international and regional commitments in areas such as human rights, environmental protection, and sustainable development, it is imperative that investment policies in the EAC states provide certainty and protection to investors, respect the regulatory space of host states, and take into account broader national goals, sustainable development objectives and priorities.