Making Investment Work for Sustainable Development: A Pressing Need to Integrate Sustainable Development into Ethiopian Investment Law

Abstract

Sustainable development is aspiration of all nation, nationality and people of Ethiopia. It embraces three mutually reinforcing pillars; economic growth, social development and environmental protection as integral part of development process. The FDRE Constitution recognizes right to sustainable development and dictates integration of economic, social and environmental concern into investment process. However, the close inspection of how investment operates in the country reveals that essence of sustainable development is missing from Ethiopian investment governance. Against this backdrop, this study examines the nexus of investment and sustainable development in Ethiopia, and appraises the adequacy of Ethiopian investment laws in mobilizing investment for sustainable development. To this end, it employed a combination of doctrinal and socio legal research method utilizing both primary and secondary sources. This study established a quest for inclusive economic growth, respect for human right, and need to curb social and environmental impacts in the course of investment as pressing issues that necessitate the integration of the pillars of sustainable development into the Ethiopia’s investment laws. It argues that the economic, social and environmental pillars of sustainable development are not appropriately integrated under the Ethiopian investment laws to insure investment works for sustainable development. Thus, legal reform is suggested to integrate sustainable development in Ethiopia’s investment laws so as to realize the motto of investment for sustainable development.