Stand-Alone Posts

The webinar brings two together the authors of two new books on the subject of international investment law in Africa and three expert panelists to interrogate thematic issues that arise from the books; their implication for contemporary practices of international investment law in Africa and beyond; and what insights we may draw on them for the future of the regimes on investment law in Africa.

As Ghana navigates the complexities arising from its debt crisis, it is equally faced by a galloping inflation, a depreciating currency, a general decline in the quality of life coupled with the high cost of living. It has become clearer that the completion of the review and unlocking of the $600 million disbursement hinges on Ghana’s official creditors swiftly reaching an agreement on specific terms of debt treatment. The AfSDJN continues to urge the IMF to actively and urgently commence deliberations on a new comprehensive, fair and effective sovereign debt restructuring mechanism based in the United Nations that would be binding on all creditors, including commercial creditors, and that would make it difficult for hold-out creditors to prevent sovereign debt workouts.

This commentary highlights the prospects and challenges of a UN framework tax convention for developing economies and makes recommendations for mitigating risks. It argues that while the proposed UN framework tax convention may provide a broader forum for increased conversations between developed and developing countries on international cooperation in tax matters, it may not be the magic wand of equal participation in global tax policy formulation hoped for by developing countries. Nevertheless, the adoption of the UN tax resolution is indeed a very significant development in the international tax law and policy space that will form the basis of very engaging conversations in the coming years.

Afronomicslaw and The South Centre are delighted to collaborate on this webinar where our Panelists will reflect on some of the most topical issues under the broad umbrella of geopolitics of reforms, Africa and the WTO. Please join us as we reflect on the MC13, reform of the WTO DSM and implications for Africa, Africa in an era of renewed industrial policy, sustainable trade in Africa among others.

In summary, as stakeholders gather and discuss at the COP28 summit in Dubai, it is important for them to bear in mind that while debt-for-climate or ecological debt for fiscal debt swaps offers a promising approach to addressing debt and climate challenges simultaneously, they need to be implemented with careful attention to transparency, accountability, and integrity. Otherwise, it could become just another pathway to facilitate IFFs in Africa, which have the potential to undermine the fiscal benefits that should ordinarily result from these swaps.

Digital solidarity and the sharing economy may seem like natural companions. To be sure, the sharing economy with its melding of community and commerce has the potential to be a key contributor to digital solidarity in developing economies. Both concepts revolve around the idea of collaboration, sharing resources and funds, community-building, the network effect, increasing trust between strangers, and the leveraging of digital technologies for the greater good. In this blog post, we consider how the sharing economy can contribute to digital solidarity in a developing economy; the barriers to the sharing economy doing so; and if unchecked how it can distort an economy. On that basis, we seek to propose a tentative legal policy for developing economies.

Amidst all this, Ethiopia's reputation with foreign credit agencies continues to suffer as a result of the national treasury's declining foreign exchange reserves. The downgrade of Ethiopia's long-term foreign-currency issuer default rating to “CC” from “CCC-” by Fitch Ratings has brought attention to this financial vulnerability. With Ethiopia's external cash dwindling and major gaps in external funding, Fitch downgraded the country, raising the possibility that default is imminent. The Fitch assessment states that although China has offered to postpone Ethiopia's debt service obligations for a year, it anticipates that these bilateral negotiations will not be "sufficient to address the large financial gaps and improve debt sustainability."

The AfSDJN notes that Zambia’s experience continues to prove the case for a new comprehensive, fair and effective sovereign debt restructuring mechanism based in the United Nations that would be binding on all creditors, including commercial creditors, and that would make it difficult for hold-out creditors to prevent sovereign debt workouts.

While China has achieved its primary objective of expanding its global influence, the resultant economic viability and heavy debt burden remain questionable. As the Belt and Road Initiative begins its second decade, the AfSDJN calls on African governments to reflect objectively on the impact and trends of Chinese foreign financing on their economies in the past decade, and advocate for a cautious Belt & Road era as the initiative continues.