The Tanzanian government acknowledged the fact that foreign direct investment is a driver for economic development which gears towards the achievement of the government’s goal of transformation of the country’s economy of industrialization. This is possible only if among other things, foreign investment is encouraged by having in place, a legal and institutional framework that foreign investors are comfortable with because they believe its neutral, stable, predictable and independent of national political influence that applies rules of international law.
On the other hand, the government has enacted and amended the laws that limits and discourage ISDS through International Arbitration and it is assumed that this reform brings about conflict of laws between those that allows and those that discourage International Arbitration vis-a-vis State’s obligations under international law which can be described as the exercise of State Sovereignty in Settlement of Investment Disputes.
