A recent legal and policy assessment has identified outdated international investment treaties as significant barriers to West Africa’s shift toward clean energy systems. The study, published in *Frontiers in Energy Research* by scholars Francisca Kusi-Appiah and Marian Kusi-Appiah, points out that while Africa contributes less than three percent of global greenhouse gas emissions, its populations face severe consequences of climate change. Over 200 million people in West Africa currently lack reliable electricity access.
The region relies heavily on traditional biomass fuels, such as firewood and charcoal, which account for 54 percent of the primary energy supply. This dependence results in health hazards and premature deaths from indoor air pollution, disproportionately affecting women and children. The Economic Community of West African States reports that biofuels and waste dominate energy consumption at 70 percent, whereas renewable sources contribute merely 32 percent to power generation. The transition to low-carbon energy systems in Sub-Saharan Africa requires closing a $90 billion annual funding gap and exceeding $200 billion in transition investments annually through 2030.
The authors argue that first-generation bilateral investment treaties and the 2003 ECOWAS Energy Protocol are designed to protect foreign investments from political risks but not public welfare. This framework often prevents governments from enacting vital decarbonization measures. For instance, Article 10 of the ECOWAS Energy Protocol allows fossil fuel corporations to challenge environmental regulations or tariff changes, leading to costly arbitration processes that inhibit essential reforms.
In examining Nigeria, the authors note how legacy contracts have strained fiscal resources. The $900 million Azura-Edo independent power project exemplifies this challenge as it obligates the Nigerian government to make payments to private operators, regardless of domestic grid capabilities. Nigeria has also faced disputes under its 1992 treaty with the Netherlands, involving companies like Shell and Eni over environmental issues in the Niger Delta.
Ghana’s situation mirrors Nigeria’s, where the government has incurred over $3 billion in debt to independent power producers due to contracts reliant on fossil fuels. Efforts to cancel excess capacity resulted in arbitration penalties, further complicating the financial landscape for utility-scale solar energy integration.
Conversely, Senegal and Côte d’Ivoire show promising approaches to mitigating investor disputes through modern regulatory frameworks. Senegal’s dual strategy balances offshore natural gas developments with wind energy projects. The Parc Eolien Taiba N’Diaye wind project, which provides clean energy to two million people, illustrates this balance. Côte d’Ivoire has emerged as a key electricity exporter, leveraging gas and hydropower through effective state management and regulations, ensuring public health and environmental protections are prioritized.
The researchers advocate for transitioning to modern investment frameworks, including the 2018 ECOWAS Common Investment Code and the upcoming African Continental Free Trade Area Investment Protocol. These initiatives seek to restore regulatory sovereignty to host states, enabling them to enforce local content laws and environmental protections, thus promoting sustainable development.
To translate these principles into practice, the authors propose a four-phase policy roadmap from 2026 to 2030. This plan includes conducting treaty audits, reforming dispute frameworks, implementing local content regulations, and establishing a unified cross-border electricity market. They stress that empirical research will be essential to assess the effectiveness of these reforms in reducing financing costs and accelerating equitable energy deployment in West Africa.
