Challenges Faced by African States in Mining and Petroleum Contract Negotiations with Special Emphasis on Stabilisation Clauses
While African States are well endowed with natural resources, especially those related to mines and petroleum, their populations do not sufficiently benefit from their extraction. Foreign investors and multinational corporations are often the main beneficiaries, with countries receiving a share of revenue that may ultimately inflict long-term damage to their national economies. An important instrument through which multinational companies protect their interests is the stabilisation clause that attempts to freeze the regulatory power of the state for the duration of the contract.