HARNESSING ETHIOPIA’S INVESTMENT LAW FOR SUSTAINABLE DEVELOPMENT VIA INTERNATIONAL DEVELOPMENT LAW: A LESSON FROM SOUTH AFRICA

Abstract

Sustainable development is the aspiration of all nations at all times and it is the aspiration of Ethiopian too. Having the fundamental objective of facilitating sustainable development for the global people, International development law (IDL) requires countries to regulate investment toward the ultimate goal of sustainable development. To this end, the principles of sustainable development along with the existing body of IDL calls for balanced integration of economic, social (human right) and environmental pillars of sustainable development in investment laws. In line with this international guidance, FDRE Constitution recognized right to sustainable development and dictates the integration of its three pillars in investment legislation. However, the close scrutiny of how investment operates and regulated in the country predicts that essence of sustainable development is almost missing from Ethiopia’s investment regimes. As a result a pretty objective investment for sustainable development remained unfulfilled promise for Ethiopian people. Against this background, this study aims to appraise extent to which the three pillars of sustainable development are integrated into the Ethiopia’s investment laws and devise possible ways of harnessing the Ethiopia’s investment law for sustainable development. In doing so, it employed doctrinal and comparative research that utilizes both primary and secondary sources. The study established quest for inclusive economic growth, respect for human right, and need to curb social and environmental impacts in the course of investment as pressing issues that necessitate harnessing Ethiopia’s investment laws for sustainable development. It found that the three pillars of sustainable development are not adequately integrated into the Ethiopia’s investment laws. Then on the basis of the relevant international guidance and experience of south Africa, the paper devised reforming preamble, restructuring definition of investment, inserting interpretative clause, reforming objective of investment, calibrating investor’s right with sustainable development, reserving right to regulate, inserting investor’s obligation and democratising investment administration as a possible ways of harnessing Ethiopia’s investment laws for sustainable development. Thus, Ethiopia’s investment law shall be reformed and harnessed for sustainable development to insure that elusive economic benefit of investment do not cause irreversible environmental, social and human right impact to the Ethiopian people.