Legal aspects of sovereignty over natural resources related to African states

• Main Author: Ezeibe, D. O.
• Published: University of Edinburgh 1976
• Subjects: 340
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.650438

The author took up the investigation of the problems of control of Mineral Resources as relates to African states; examined various legal frameworks within which African nations controlled their mineral resources prior to their independence; and the measure of control African states adopted in the post independence period. Prior to their independence, African nations controlled their mineral resources but later lost the effective control to the early European companies, which subsequently relinquished the right of mineral ownership to their various states under whose sovereignty African nations fell. On attainment of independence, the new concept of economic sovereignty developed in the United Nations. In order to achieve the same, African states adopted various legal devices, such as repealing the colonial laws, modifying the old contracts to their advantage, formulated mineral policy, and adopted legislation in pursuit of national objectives. The above measures made an impact on reconsideration of the issue of state takeovers and the motive, forms of payment of compensation, and the principle of acquired rights. While adhering to the minimum standard of international economic law in the form of protection of foreign investment, and settlement of disputes, African states have evolved measures which give them maximum benefit and control over mineral resources in the forms of: incorporation of foreign firms in the host state, training and employment of local personnel, relinquishment of concession areas, conservation, safety practices including legislation against pollution, participation in exploitation of mineral resources through state corporations. Significantly, foreign investments, tax on profit of foreign firms, rents, premiums, royalty and the repatriation of profit on capital to the country of original capital investment, including reinvestment in the host country, have been regulated through various state agencies. On the international level African states have formed economic co-operatives to co-ordinate their policies and activities for better utilization of mineral resources. It is therefore concluded that the exercise of sovereignty over natural resources involves diversities of state control and co-operation at all levels.