When Foreign Investment and Its Dispute Mechanisms Work against African Economic Advancement: Revenue and Sustainable Development Implications

Abstract

This article explores the importance of the disclosure of beneficial ownership in states revenue collection
efforts and its implications for sustainable development. It critically analyses the concealment of beneficial
ownership and investment tribunals uncritical acceptance of jurisdiction in such cases. The article suggests
that this uncritical acceptance increases the risk of money laundering and could potentially breach
fundamental principles of transnational policy. These tribunals have also been hesitant to consider the
investors failure to pay taxes when awarding damages. In so doing, the tribunal offers a powerful
enforcement tool for investors but leaves the state with only limited recourse.