Insights from the Africa-UAE Economic Forum on Building a Secure Investment Legal Framework in Africa

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A New Era of Legal Confidence in Africa

The Africa-UAE Economic Forum, held in Dubai on December 18th and 20th, 2025, brought together key stakeholders at a pivotal moment in Africa’s economic development. The event highlighted the continent's growing appeal to global investors, particularly those seeking stability, predictability, and reliable legal protections. One of the main challenges to investment in Africa has long been the perception that its legal systems lack the robustness needed for foreign capital. However, this narrative is increasingly being challenged by reality.

During my presentation titled “A Secure Legal Framework for Investment in Africa,” I emphasized that the legal frameworks in place across the continent are not only sufficient but also comparable to those found in more established markets. The issue lies not with the laws themselves, but with the outdated perceptions that continue to shape investor behavior.

Investors do not seek perfection; they look for jurisdictions where risks are manageable and rights are enforceable. This principle has been recognized in common law traditions for centuries. As Lord Bingham of Cornhill once noted, “the rule of law is not merely a moral ideal, it is a foundation for economic growth.” Capital thrives in environments where there is certainty, not sentiment.

African legal systems have long been built on well-established traditions, whether common law or civil law. These systems are characterized by constitutional supremacy, clear statutory frameworks, and a strong reliance on judicial precedent. They are familiar to international investors and operate within legal languages that are widely understood by global legal professionals.

Contrary to popular belief, African investment regimes are neither fragmented nor improvised. Investors across the continent can expect:

• Constitutional guarantees of property rights and access to justice.
• Investment promotion statutes that ensure non-discrimination and protection against unlawful expropriation.
• Modern company, insolvency, and securities legislation.
• Arbitration laws aligned with the UNCITRAL Model Law.
• Widespread adherence to the New York Convention on the enforcement of foreign arbitral awards.

These structures are not theoretical—they are actively used by investors, financiers, and regulators every day. As A.V. Dicey once stated, the rule of law demands that rights be determined by ordinary courts applying known laws. African courts are increasingly doing just that.

At the forum, I stressed that the true test of a legal system is not its statutes, but the judgments it produces. African courts have repeatedly shown their willingness to enforce contractual and proprietary rights, even when these rights are against the state itself. For example, in the case of Luis Díaz de Losada v Government of The Gambia (1980), the courts upheld the rule of law when the government failed to meet its contractual obligations. This decision echoed a principle articulated by Blackstone: “ubi jus, ibi remedium” — where there is a right, there must be a remedy.

This was not an isolated incident. Similar judicial confidence can be seen in Ghanaian courts enforcing foreign arbitral awards, Kenyan courts ensuring access to justice for foreign companies, and Nigerian courts protecting commercial rights in complex cross-border disputes. These decisions signal that African courts are active participants in maintaining legal certainty.

Another significant point addressed during the forum was the continent’s growing success in arbitration. Africa now hosts reputable arbitral institutions in cities such as Cairo, Kigali, Lagos, Nairobi, Johannesburg, and Mauritius. These centers handle disputes involving multinational investors and sovereign entities, operating under internationally accepted rules. Additionally, African courts are increasingly supportive of arbitration, enforcing awards and limiting unnecessary interference. This alignment between courts and arbitration enhances investor confidence and strengthens Africa’s reputation as a dispute-resolution-ready destination.

Corruption remains a challenge in many African countries, but it is important to distinguish between governance issues and the presence of legal protections. No jurisdiction is immune from corruption, yet to equate its existence with the absence of legal safeguards is a critical misunderstanding. Anti-corruption legislation, procurement reforms, judicial review mechanisms, and regulatory enforcement continue to strengthen accountability across the continent. Investors who operate transparently and engage properly within these systems find themselves protected by increasingly capable legal frameworks.

A recurring theme in my presentation was the shared responsibility of legal certainty. Africa’s legal systems are strongest when investors approach them with discipline and principle. This includes conducting rigorous due diligence, drafting precise and unambiguous contracts, adopting credible dispute-resolution mechanisms, and appointing honest, integrity-driven local partners while respecting applicable regulations.

Where investors adhere to these principles, Africa’s legal systems respond predictably. Where they do not, disappointment is often misattributed to the law rather than to avoidable structural weaknesses.

The Africa-UAE Economic Forum marked a shift in how Africa is perceived. It signaled that the continent is no longer defined by legal uncertainty, but by evolving legal confidence. Africa does not ask investors to ignore caution, but to reassess their assumptions. Its legal frameworks are written, tested, and enforced. Its courts adjudicate. Its arbitral awards are recognized. The law, increasingly, works.

It is time for investment decisions about Africa to be guided by contemporary legal reality, not by inherited perceptions.