Legal report streamlined customs and the same currency. The union (established in 1994 to promote economic integration among countries that use the same CFA franc currency) is symbolically led by Senegal, a country that rises above the rest for its stability, specifically after Senegal elected a new president in 2012.
SENEGAL
Senegal is consistently ranked as one of the top economies in Africa, and is currently listed as one of the top three-growing as well. The country boasts a stable political environment, sound infrastructure and a strategic location in West
Africa. Similar to Côte d'Ivoire, Senegal is a member of the West African Economic Monetary Union (WAEMU). The eight-country currency union certainly provides investors key advantages for operating in West Africa, including
Some investors believe that Senegal can position itself as a centre for Islamic finance, as a country with an The Government of Senegal has further prioritised efforts to improve approximate 95 percent Muslim population. About 54 percent of the business climate. Thanks to West Africa's population is Muslim. public expenditure, Senegal has Senegal also offers a simple system made significant progress in for repatriation of capital. infrastructure development, including the transport, electricity, Finally, the country has strong and water sectors. In fact, the ambitions in the oil and gas sector country has aggressively pursued and recent mega discoveries off the public-private partnerships for completing infrastructure projects. country's coast point to a dynamic future in the oil and gas sector. The The country's Act Build Operate Mauritania-Senegal-Guinea Bissau Transfer law, passed in 2004, provides a regulatory framework for Basin is now considered a key entry point for oil and gas, and key such transactions. development projects are slated to move ahead in the coming years. Senegal is ranked by the World Bank's Doing Business report as one
TOP CONTENDERS & REGIONAL COOPERATION
Botswana, despite being an incredibly open market to foreign investment, is often overshowed by the economic might of neighbouring South Africa. South Sudan, though it Southern and East Africa, also did Countries like Ghana, Ethiopia, offers a new business landscape Tanzania and South Sudan, despite not make the top five due to recent with a very investor-friendly questions about the business their remarkable growth and regulatory framework and climate and the stability of investment potential, have been aggressive pursuit of investment, marginally excluded from the top 5 contracts. Although Kenya boasts poses a stability risk to investors and one of the world's fastest-growing has a significant anti-corruption gap due to restrictions to foreign economies and is on the way to investment in some sectors, to fill. becoming an economic and questions on stability, and other country-specific factors. Ghana, for technology powerhouse in Africa, it When it comes to doing business in example, is one of the most stable was excluded due to the current Africa, it's neither one country nor democracies on the continent and political climate, with political 54 countries. Rather investors have uncertainty and unrest driving provides investors with a peaceful to take a regional approach. A quote instability. and predictable operating from Africa.com's Insider's Guide to environment, serving as a key point Business Travel aptly describes this Others with significant promise, of entry into West Africa. Ghana, scenario- “Many business travellers including South Sudan and however, currently faces a to West Africa find Accra to be close Botswana rank lower than the top enough to access Nigeria's large significant fiscal overhang, which five due to the fact that their has a negative effect on its economy market, but prefer the quality of life economies are comparatively less for the short to medium term, that Accra affords visitors.” diversified and there are regional according to Deloitte. Tanzania, Therefore, neighbouring states with destinations with better infrastruc- similar investment potentials will be though it has strong macroecoture and other advantages. nomic indicates compared to settling disputes which is not capable of ensuring that those disputes will be decided by a court within the judicial system of the EU,” the court said in a statement. “The arbitration clause … has an adverse effect on the autonomy of EU law and is therefore incompatible with EU law.”
By 2004, Czechoslovakia had become Slovakia and the country opened up its sickness insurance market to attract private investors. A Dutch insurer known as Achmea responded by setting up a local subsidiary hoping to cash in on the new market. But Slovakia performed a partial u-turn on the liberalization of its market, banning The ECJ passed judgment on a deal firms from distributing profits made continued from pg 23 from 1991, the end of the Cold War through selling sickness insurance. for insurance against sickness, was era, which had been intended to encourage and protect investments Achmea hit back by taking Slovakia incompatible with Brussels between the Netherlands and what to an arbitration tribunal, which legislation. was then Czechoslovakia — which ruled that the country had at the time was behind the Iron breached the 1991 agreement and The case, in which 15 member ordered it to pay around €22.1 states and the European Commis- Curtain. million ($27.4 million). Slovakia sion submitted arguments, has The agreement stated that disputes appealed to the German courts, been closely watched. The ruling arguing that the arbitration clause sets major limitations on the power between one government and an investor from the other country had breached the Treaty on the of governments to write the EU's to be “settled amicably,” or through Functioning of the EU, one of two courts out of domestic decisionan arbitration tribunal. By primary pieces of EU legislation. making procedures. implication this prevented disputes from going to conventional courts The appeal reached the EU's “Slovakia and the Netherlands of law. highest court, but now returns to established a mechanism for
ECJ BLOCKS ARBITRATION CLAUSE IN INSURANCE TRADE DEAL
of the world's top business reformers, and consistently ranks in the top ten business environment improvers. The minimum capital required to start a business as well as stamp duties on business startups were abolished in 2015.
hedged by each other, in terms of attracting FDI, based on factors such as a more stable legal and regulatory framework, political climate and superior business support infrastructure. The existence of regional integration constructs such as West African Economic and Monetary Union (WAEMU), the Southern African Development Community (SADC), the Economic and Monetary Union of Central Africa (CEMAC) and the East African Community (EAC) means that there is also significant access to regional markets once a business destination choice has been made and therefore every point counts for the host countries in attracting significant FDI. – Zion Adeoye, Associate, Centurion Law Group
the German courts. The case attracted attention from across the bloc. Governments that threw their weight behind Slovakia included the Czech Republic, Greece, Spain, Italy and Poland. The Commission, the EU's executive arm, also backed the Slovak government. But other member states argued that such arbitration clauses were valid. Among them were Germany, France, the Netherlands, Austria and Finland. Details of the parties' legal representatives were not immediately available. The case is Slowakische Republik v. Achmea BV, number C-284/16, in the Court of Justice of the European Union.
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EsQ Legal Practice