Participation of the African nations in bilateral investment treaties: the "vector" of multinational enterprises from the global south

The inflows of foreign direct investments (FDIs) to African nations have increased, they are more frequently becoming host countries for multinational enterprises (MNEs) and sometimes invest abroad. The outcome of such activities is ambiguous due to uncertainty and risk of various nature. Bilateral investment treaties (BITs) are drawn up in order to improve business environment for MNEs and assure sustainable development of host countries. Until the beginning of the 20th century BITs between developed and emerging economics were dominant, but now it is common to find such treaties drafted between the nations of the Global South. Northern, Eastern, and Western Africa lead the continent by the number of BITs. The Global South countries have more BITs with African nations then the advanced economies do, and this defines the new investment “vector” of the continent. It is rational to map the global BITs by groups of criteria, such as investment concepts, terms of treatment, property rights protection, dispute settlement, exclusions and clauses. The results of such mapping performed by the UNCTAD staff have been overviewed in the paper. It has been found that the African nations have drafted a very limited number of world-class BITs and most of them have been concluded with emerging economies (like the recent Burundi - Turkey treaty). It has been stipulated that such productive approaches should considered while drawing up BITs between Russia and African nations.