Rethinking Ethiopia's Bilateral Investment Treaties: A Comparative Analysis with Emerging Global Models

Abstract

 This reflection provides a critical, comparative analysis intended to inform the
development of a coherent Ethiopian model Bilateral Investment Treaty (BIT),
grounded in best practices and aligned with the nation's development priorities.
It examines Ethiopia’s bilateral investment treaties (BITs) through a comparative
perspective, drawing upon analyses of treaties Ethiopia has signed with Libya,
Algeria, Sudan, Finland, Sweden, China, and Egypt to attract Foreign Direct
Investment (FDI). These are contrasted with model BITs from South Africa, India,
Ghana, Brazil, Kenya, Morocco, and China. The discussion underscores that,
despite Ethiopia’s extensive engagement with BITs, the country’s treaty practices
remain fragmented, lacking coherence and a national model BIT to ensure
consistency in substance, structure, and policy orientation. These limitations have
led to agreements that, often variably and disproportionately, privilege investor
protections while inadequately safeguarding regulatory space and public-interest
objectives. Consequently, this reflection offers insights to improve Ethiopia’s
ongoing bilateral treaty revisions and reforms, ensuring alignment with
contemporary international investment standards.