Ghana: The ideal member to host the proposed UNCITRAL Advisory Centre on International Investment Dispute Settlement (Investor-State Dispute Settlement)
In 2017, the United Nations Commission on International Trade Law (UNCITRAL) tasked its Working Group with exploring reforms to the Investor-State Dispute Settlement (ISDS) system. In January 2024, in Vienna, the group reviewed a draft statute for an advisory center and discussed updates to guidelines on preventing and mitigating investment disputes. The forty-eighth session of the Working Group again took place from April 1 to 5, 2024, at the United Nations Headquarters in New York. Representatives from 47 Member States including Ghana and 19 Observer States participated, focusing on advancing ISDS reforms, including procedural issues and the establishment of the advisory center.
The writers of this article duly participated in the side event of the 48th Session of UNCITRAL Working Group III in New York in April 2024. Both are lawyers and international dispute resolution practitioners and members of the Chartered Institute of Arbitrators (CIARB). As Ghanaian nationals, they bring a unique perspective to the discussion of investment dispute resolution and the potential for Ghana to serve as the host state for the Advisory Centre. Their knowledge in international investment law and their deep connection to Ghana’s role in global and regional governance inform their analysis and recommendations for enhancing the global investment dispute framework through effective and impartial dispute resolution mechanisms.
Ghana is centrally located in West Africa, making it well-positioned to serve both the African continent and the world community. Its location allows for easy access to adjacent nations in Sub-Saharan Africa, which is increasingly in need of competent investment dispute resolution. Ghana, a hub for international trade and investment, provides strong connectivity through air and seaport access, which links it to important worldwide destinations. The country further boasts of its free visa system for most African Countries and Visa -on- arrival for most advanced countries as well. This central location and accessibility would enable the Advisory Centre to efficiently reach a wide range of countries and stakeholders, a factor that may be less pronounced in the case of the United States and France, both of which are geographically inaccessible from key regions such as Sub-Saharan Africa due to visa and travel restrictions.
Trade & Investment Hub
Ghana’s unique position as the host of the African Continental Free Trade Area (AfCFTA) Secretariat and its longstanding role in global multilateralism make it a suitable and neutral host for an institution dedicated to resolving investment disputes and promoting sustainable development across regions. Ghana’s ISDS advisory center host candidacy, particularly as a developing country in West Africa, offers a unique opportunity to build trust and confidence in the global investment dispute resolution system, especially among developing and least developed countries (LDCs). This proposal stands in contrast to other prominent competitors, such as the USA and France, whose geopolitical interests may influence their approach to investment dispute resolution.
As the host of the AfCFTA Secretariat, Ghana plays a pivotal role in advancing Africa’s economic integration and trade liberalization. The AfCFTA aims to create a single continental market for goods and services, which will inevitably lead to an increase in cross-border investments and potential disputes between investors and states. The Advisory Centre would complement the AfCFTA’s efforts by providing critical support for resolving investment-related disputes that arise within the free trade area. Ghana’s leadership in AfCFTA positions it as a natural host for an institution dedicated to investment protection and dispute resolution, ensuring that economic integration is supported by a robust, impartial system for handling disputes. By contrast, France and the USA, despite their influential roles in international trade and investment, may not be perceived as inherently neutral or regionally connected to Africa’s economic integration in the same way that Ghana is.
As a member of key international organizations, including the United Nations and the World Trade Organization (WTO), Ghana has played an active role in advocating for inclusive global governance and cooperation. The writers strongly believe that the Advisory Centre, by its nature, requires the support of a neutral, globally engaged host to facilitate dialogue and cooperation among countries of all sizes and levels of development. Ghana’s established reputation for engaging with diverse international actors enables it to act as a credible bridge between the Global North and the Global South, ensuring that the Centre’s work is aligned with the interests of all member states.
Ghana boasts a well-established legal system, grounded in common law, with growing expertise in international trade law and investment arbitration. Additionally, Ghana has committed to protecting investor rights and resolving investment disputes fairly, as evidenced by its membership in the International Centre for Settlement of Investment Disputes (ICSID) and other international treaties related to investment protection.
Ghana is one of the fastest-growing economies in sub-Saharan Africa, attracting significant foreign direct investment (FDI) across sectors such as oil, mining, agriculture, and infrastructure. This dynamic economic environment presents opportunities and challenges for investment dispute resolution, making the Advisory Centre’s services even more relevant. Ghana’s policies, which focus on sustainable development and good governance, align with the Centre’s mission to offer technical assistance and capacity-building for states involved in investment disputes. Ghana’s growing economic profile ensures that it will continue to benefit from the Centre’s work, as it strives to maintain stability and predictability in investment.
Political Stability and a Non-Aligned Growing Economy
Ghana has earned a reputation for its stable democracy, with peaceful transitions of power and strong institutions of governance. As a non-aligned member of the Non-Aligned Movement (NAM), Ghana has consistently demonstrated its commitment to neutrality and impartiality in global affairs. This aligns perfectly with the Advisory Centre’s mandate to offer independent and unbiased assistance to states in managing investor-state disputes. Ghana’s neutral stance ensures that it can effectively manage the Centre’s operations with fairness and credibility, fostering confidence among all member states, whether developed or developing.
Ghana has cultivated strong relationships with a broad range of countries, from developed nations to developing states. This broad diplomatic network enables Ghana to serve as a reliable host for the Centre, capable of facilitating international cooperation among diverse stakeholders and ensuring that the Centre’s services reach those most in need, particularly in developing countries.
One of the most compelling reasons to establish the Advisory Centre in Ghana is its ability to boost confidence in the system among developing and least developed countries. These countries, often wary of international arbitration or dispute resolution mechanisms that may appear biased toward Western interests, will feel a stronger sense of ownership and trust in the system if the Centre is in a neutral, non-aligned African state. Ghana’s hosting of the Centre ensures that these nations are not required to submit their disputes to Western jurisdictions or institutions, where they may fear unequal treatment or biased decisions.
With Ghana as the host country, these countries would perceive the Advisory Centre as an accessible and fair platform for legal advice and support regarding international investment dispute proceedings in accordance with Article 7 of the Draft statute of an advisory centre on international investment dispute resolution. This distinct perspective would encourage increased engagement in the Centre’s activities and membership among those who may have been unwilling to engage with systems in which they believe their interests are underrepresented or compromised.
A compelling case for GHANA as the ideal host
A first Advisory Centre operationalization meeting was held in Bangkok, Thailand (2–4 December 2024).
During the meeting, key criteria for the determination of the host member state and regional hubs were discussed.
Firstly, Ghana stands as the optimal choice for hosting the proposed ISDS Advisory Centre, aligning with key criteria for selecting the headquarters’ location. As a developing country in Africa, Ghana offers a strategic and inclusive approach to global governance by promoting a better distribution of international organizations, in line with the broader objectives of the Sustainable Development Goals. Its central location, robust infrastructure, and commitment to neutrality and good governance ensure that the Advisory Centre would be easily accessible to both member states and beneficiaries, especially developing and least-developed countries that stand to benefit the most from its services. Moreover, Ghana’s proximity to these regions would facilitate more effective communication, reduce operational costs, and foster greater international cooperation, making it the ideal host for this vital institution.
Furthermore, the country stands out as an ideal host for the proposed ISDS Advisory Centre due to its strategic geographical location, political stability, commitment to good governance, and growing role in Africa’s economic integration. Its strong legal framework, neutral stance in international relations, and growing economy provide the necessary foundation for establishing an effective, impartial dispute resolution mechanism that serves the global community, particularly developing and least developed countries. Ghana’s role as the host of the AfCFTA Secretariat further enhances its suitability, positioning it as a key player in shaping Africa’s voice in global investment governance. The establishment of the Advisory Centre in Ghana would not only strengthen Africa’s participation in international dispute resolution but also offer a fair, accessible platform for resolving investment disputes, fostering greater confidence among all nations, particularly in the Global South.
Ghana’s political stability puts them above other African competitors like the DR Congo and La Côte D’Ivoire who have also shown interest in hosting the Advisory Center. The Congolese and the Ivorians have had a fair share of political uprisings in the past few decades and with that, Ghana stands out as the only reasonable choice.
By choosing Ghana, the Advisory Centre would benefit from a dynamic, accessible, and cost-effective environment that promotes inclusivity, enhances outreach, and supports the Centre’s mission to serve developing and least developed countries. Hosting the Advisory Centre would further solidify Ghana’s leadership in shaping Africa’s influence in global investment governance. Ghana’s diplomatic expertise, honed through years of international peacekeeping and conflict resolution, aligns with the Centre’s mission to provide impartial dispute resolution, ensuring that Africa’s interests are fairly represented in global investment governance.
The Writers:
Prince Kojo Tabiri is a Lawyer, Arbitrator & Mediator and an Associate of the American Arbitration Association’s International Center for Dispute Resolution (ICDR) Young & International as well as a Member of the Chartered Institute of Arbitration (CIARB) Ghana & Canada branches.
Godwin Selasie Owusu is a Lawyer, an Intellectual Property Rights Advocate & an Arbitrator. He is a member of the Chartered Institute of Arbitration (CIARB) Ghana & New York Branches.
Special mention and recognition to Ms. Deborah Aba Aikins, First Secretary and Legal Advisor, Permanent Mission to the United Nations and other International Organisations, Ghana) for her tremendous work in advocating for Ghana as a host member for the Advisory Center.
