By Burnett Munthali
Malawi’s Attorney General, Thabo Chakaka Nyirenda, has emphasized the importance of transparency and accountability in investment agreements, calling on government officials and international investors to uphold ethical standards in business dealings. Speaking at the Sovereign and States Disputes and Enforcement Summit 2025 in London, Nyirenda stressed that eliminating corrupt practices and illicit financial flows is essential for sustainable economic development and investor confidence.
“The days of corrupt practices and illicit financial flows must come to an end. Investors must be held accountable for their actions, and governments must prioritize transparency and accountability in their investment agreements,” he declared.
Nyirenda highlighted the African Continental Free Trade Area (AfCFTA) Protocol on Investment, which mandates African governments to establish and enforce laws that safeguard investment-related human rights, labor rights, and environmental protection. He noted that corruption and illicit financial flows drain billions of dollars from Africa each year, depriving countries of much-needed resources for development.
To illustrate the significance of accountability in investment agreements, Nyirenda referenced several high-profile international cases, including:
Indiana Resources Ltd v Republic of Tanzania – a dispute involving mining rights and the obligations of state parties in protecting investors.
ECo Development and ECoEnergy v Republic of Tanzania – a case that raised concerns about government commitments in investment agreements.
World Duty Free Ltd v Republic of Kenya – a landmark case that set a precedent on how corruption can nullify contractual agreements.
Federal Republic of Nigeria v Process & Industrial Developments Ltd – a case highlighting the impact of fraudulent investment agreements on national economies.
Nyirenda’s remarks signal a strong stance against corruption, aligning Malawi with broader global efforts to create a fair and transparent investment climate. His advocacy also reflects the increasing demand for ethical business practices and legal accountability in Africa’s economic landscape.
As Malawi seeks to attract foreign direct investment and expand trade partnerships under AfCFTA, the Attorney General’s call for transparency serves as a reminder that sustainable growth depends on integrity in governance. His message reinforces the need for government institutions to implement strict measures against corrupt dealings and for investors to uphold international legal and ethical standards in their engagements.
The Sovereign and States Disputes and Enforcement Summit 2025 brought together legal experts, policymakers, and investors from across the world to discuss best practices in dispute resolution and investment governance. Nyirenda’s participation highlights Malawi’s commitment to fighting corruption and ensuring that investment agreements contribute to national development rather than being exploited for personal or corporate gain.
With corruption remaining a major obstacle to economic progress in many African nations, Nyirenda’s firm stance could help shape Malawi’s policies on investment governance while setting an example for other countries seeking to enhance transparency and accountability in their economies.
