Rising investment disputes and evolving regional dynamics impact Western Africa arbitration

Construction and extractive industry developments have generated a growing number of investor–state claims. ICSID’s 2025 statistics reflect a sharp increase in cases from the region: half of the state respondents are located in Francophone (French-speaking) Africa, and Niger alone accounts for three registrations recently.

• Read more: international arbitration developments and trends for 2025-26

The drivers behind this rise are diverse but recurrent across the region. Investors continue to face difficulties securing or maintaining project financing, leading to contract terminations and renegotiations. Several states have taken steps to revoke permits or expropriate investments, sometimes following legislative reforms affecting concessions and exploration rights. Allegations of corruption regularly disrupt the implementation and continuity of major investments, while the seizure of assets and sudden introduction of new tax burdens or withdrawal of existing exemptions have contributed to escalating disputes.

The mining sector, particularly in West Africa, has been central to these developments. The French nuclear company Orano is pursuing two ICSID proceedings against Niger in relation to the seizing of a uranium mine. In June 2025, the Canadian mining company Barrick Gold sought provisional measures against Mali before an ICSID tribunal, as the Bamako commercial tribunal ordered temporary provisional administration of its gold mining operations. The parties entered into a settlement in November 2025. Meanwhile, Sarama Resources initiated ICSID steps over its mining concessions, highlighting persistent friction over resource development agreements and state obligations. Across these matters, claimants consistently invoke breaches of investment protections, the imposition of new fiscal regimes and operational restrictions on large‑scale extractive operations.

Alongside these developments, shifts in investor demographics are reshaping arbitration preferences across the continent. The UAE has emerged as one of Africa’s largest investors, particularly in infrastructure and energy, generating both economic momentum and concerns around governance. This trend is reflected in arbitration seat preferences: according to the latest Queen Mary Survey, Dubai now ranks as the fifth most popular seat for Africa-based respondents, joining Beijing, Shenzhen and Lagos among the top ten. The selection of these seats reflects the expanding influence of Chinese and UAE investment flows, signalling a gradual diversification away from traditional European arbitration seats or centres.

At a regional level, OHADA - Organisation pour l'Harmonisation en Afrique du Droit des Affaires, a unified business legal system adopted by 17 west and central African states – and its Common Court of Justice and Arbitration (CCJA) remain central pillars of the arbitration landscape. Burundi is also actively considering accession to the OHADA Treaty, despite being an east African state, and its membership would significantly expand the reach of OHADA’s harmonised business law framework. Following a reform decided in October 2023, since July 2025, a ‘Comité de Suivi’ is entrusted with the task of supervising the CCJA-OHADA arbitration proceedings on behalf of the CCJA.

Finally, the local arbitration ecosystem continues to grow in visibility, and some of the regional institutions have been part of a push for ‘local content’ in the context of contracts involving states and state entities. Regional centres such as CAMeC in Benin, CACI in Côte d’Ivoire, CAMC in Senegal and CATO in Togo have remained active throughout 2025, prioritising capacity‑building, digitalisation initiatives and professional training. While no major rule revisions were introduced over the past year, these centres have strengthened their presence through events and partnerships. A notable highlight was the inaugural African Week of Arbitration, Justice and Commercial Information held in Cotonou from 29 September to 3 October 2025. Centred on the work of the CCJA and the role of state courts in promoting ADR, the event is intended to recur every two years, reflecting growing regional coordination and institutional maturity.