The Right to Regulate in Natural Wealth and Resources in Tanzania: Challenges and Prospects

Abstract

This article examines the right to regulate in Tanzania amidst legal reforms in natural wealth and resources done in 2017. The right to regulate seeks to balance investor’s economic interests in investment protection with host states’ interests in pursuing public policy objectives such as environmental protection and human rights (distributive justice). Achieving this delicate balance, however, is quite tricky. While these legal reforms elevated the right to regulate to new lights, they equally exposed Tanzania to new investment arbitration claims. This article has reviewed related literature, statutes and case laws and observed that regulatory measures taken in pursuance of these reforms may be at odds with investment treaty standards and commitments entered by Tanzania in investment treaties. This is especially so given the fact that majority of investment treaties entered by Tanzania do not contain provisions recognizing or implicating right of states to regulate. It is, therefore, recommended that Tanzania should review investment treaties so that they also reflect right of states to regulate. By complementing efforts done under domestic investment laws, this will help to safeguard the right of state to regulate.