Proposing the Bonding Requirements for Investment in Africa: A Tripartite Solution for the Environmental Protection

Abstract

AbstractAfrican countries do not have an effective legal framework to address the environmental damage that would be caused by the mining activities and oil exploitation of the transnational corporations. To resolve the issue, the paper proposes the modified bonding requirements under a tripartite agreement whereby the corporations’ home governments are involved. Conducting the discussion in the context of the Chinese investment in Africa and the environmental concerns that arise, the paper shows that such a scheme offers many advantages over the conventional bonding requirements and that it benefits both the local and the Chinese governments. Further, it proposes that the scheme should be made mandatory for any investors and governments in respect of their investments in the mining and oil industries in Africa.