© MISHCON DE REYA 2014 HOW AFRICA HAS FARED IN INVESTMENT DISPUTES. A REALITY CHECK. By Karel Daele...

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HOW AFRICA HAS FARED IN INVESTMENT DISPUTES. A REALITY CHECK.

By Karel Daele

“Striking the Legitimate Balance between Host-State Sovereignty and Investor Needs: Perspectives from and regarding Africa” Panel

“Enhancing Business Opportunities in Africa: The Role, Reality and Future of Africa-Related Arbitration”, Atlanta International Arbitration Society Conference

2-3 NOVEMBER 2014 - ATLANTA


• Forty-five Contracting States (83.5%)

• Three States signed but did not ratify the ICSID Convention (5.5%): Ethiopia, Guinea-Bissau and Namibia

• Six non-Contracting States (11%): Angola, Djibouti, Eritrea, Equatorial Guinea, Libya and South Africa

1. CONTRACTING STATES ICSID- Atlanta 2-3 NOVEMBER 2014 - ATLANTA


2. MAP ICSID MEMBERSHIP


• While Africa accounts for 28% of ICSID’s membership, it accounts for 23% of its disputes: 113 disputes on a total of 487

• 70% of the Contracting States (32) have been respondent to one or more ICSID cases

• 30% of the Contracting States (13) have not been respondent: Benin, Botswana, Cape Verde, Chad, Comoros, Lesotho, Malawi, Mauritius, Sao Tome & Principe, Sierra Leone, Somalia, Swaziland and Zambia

• South Africa and Equatorial Guinea (non-Contracting States) have been respondent to ICSID Additional Facility proceedings

3. ICSID RESPONDENTS2-3 NOVEMBER 2014 - ATLANTA


4. MAP ICSID RESPONDENTS


• Forty-one pending cases of which thirty-nine arbitrations and two conciliations

• Seventy-six concluded cases of which seventy arbitrations and six conciliations

• Of the seventy concluded arbitrations:

5. OUTCOME OF ICSID CASES 2-3 NOVEMBER 2014 - ATLANTA

33%

26%

26%

12%3%


• More investor claims are settled than upheld or dismissed

• The number of claims upheld equals the number of claims rejected

• Worldwide results (UNCTAD 2014 Report): 43% dismissed, 31% upheld, 26% settled

• Only 25% of the claims against African States have been upheld; 72% of the claims are either rejected, settled or discontinued

6. OUTCOME OF ICSID CASES 2-3 NOVEMBER 2014 - ATLANTA


• Twelve States (26%) have been found liable:

Once (8): Burundi, Gabon, Guinea, Liberia, Senegal, Seychelles, Togo and Zimbabwe

Twice (3): Central African Republic, Congo Republic and Tanzania

On three occasions (1): Egypt

• Sixteen States (34%) have been respondent but not found liable (either because the claims were settled, rejected or discontinued): Algeria, Burkina Faso, Cameroon, DRC, Gambia, Ghana, Ivory Coast, Kenya, Madagascar, Mali, Morocco, Niger, Nigeria, Rwanda, South Africa and Tunisia;

7. LIABILITY2-3 NOVEMBER 2014 - ATLANTA


2-3 NOVEMBER 2014 - ATLANTA

7. LIABILITY


• Twenty-three States are involved in pending disputes and are potentially liable

8. POTENTIAL LIABILITY 2-3 NOVEMBER 2014 - ATLANTA


8. POTENTIAL LIABILITY


• Damages exceeding 100 million (1): Chemin de Fer v Gabon (160)

• Damages 50 to 100 million (2): Waguih v Egypt (74.5); Siag v Egypt (settled; 74)

• Damages 10 to 50 million (4): Togo Electr v Togo (39); Southern Pacific v Egypt (settled; 22.5); Wena Hotel v Egypt (19.5); AGIP v Rep. Congo (12)

• Damages 5 to 10 million (5): American Manufacturing v Egypt (9); Funnekotter v Zimbabwe (8); Liberian Timber v Liberia (8); CDC v Seychelles (6.7) ; AHS Niger v Niger (5.8)

• Damages 1 to 5 million (3): Middle East Cement v Egypt (3.9); Lahoud v DRC (1.7); Goetz v Burundi I (1.2);

• Damages 0 to 1 million (5) : SOABI v Senegal (0.6); Atlantic Triton v Guinea (0.3); Benvenuti v Rep Congo (0.1); RSM v CAR (0.02); Biwater v Tanzania (0)

9. DAMAGES AWARDED (USD)2-3 NOVEMBER 2014 - ATLANTA


9. DAMAGES AWARDED (USD)2-3 NOVEMBER 2014 - ATLANTA


• Over 75% of the claim awarded (2): CDC v Seychelles (100%); Togo Electr v Togo (95%)

• Over 50% of the claim awarded (1): Funnekotter v Zimbabwe (70%)

• Over 25% of the claim awarded (5): American Manufacturing v Egypt (42%); Atlantic Triton v Guinea (35%); Waguih v Egypt (34%); Siag v Egypt (settled; 34%); Wena Hotel v Egypt (30%)

• Less than 25% of the claim awarded (7): Southern Pacific v Egypt (settled; 18%); Middle East Cement v Egypt (8%); Lahoud v DRC (8%); Goetz v Burundi I (5%); SOABI v Senegal (14%); RSM v CAR (0.0002%); Biwater v Tanzania (0%)

10. RATE OF SUCCESS (USD)2-3 NOVEMBER 2014 - ATLANTA


10. RATE OF SUCCESS (USD)2-3 NOVEMBER 2014 - ATLANTA


Karel DaelePartner International ArbitrationTel: +44 20 7440 7060Fax: +44 20 7831 3487E-mail: [email protected]

Mishcon de ReyaSummit House12 Red Lion SquareLondonWC1R 4QD

11. THANK YOU2-3 NOVEMBER 2014 - ATLANTA

© MISHCON DE REYA 2014 HOW AFRICA HAS FARED IN INVESTMENT DISPUTES. A REALITY CHECK. By Karel Daele...

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