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Opinion: Role of Rule of Law in Attracting Foreign Investment

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By Skipper Andrew

The strength of the Rule of Law in a country ranks among the top three considerations when multinationals make decisions about where to locate foreign direct investment – above considerations such as the cost of doing business and access to national and regional markets.

In its simplest form, the Rule of Law means that “no one is above the law”. It is the foundation for the development of peaceful, equitable and prosperous societies.

For the Rule of Law to be effective, there must be: Equality under the law; transparency of law; an independent judiciary; and access to legal remedy*.

Where investors experienced Rule of Law challenges – particularly political instability, arbitrary or discriminatory treatment and intellectual property violations – it also revealed that they are liable to reduce or even withdraw investment.

These are some of the findings of “Risk and Return: Foreign Direct Investment and the Rule of Law”, based on a survey of over 300 senior decision makers at Forbes 2000 companies with global annual revenues of at least US$1 billion. Hogan Lovells alongside the Bingham Centre for the Rule of Law and the Investment Treaty Forum at BICIL, the Economist Intelligence Unit and the British Institute of International Comparative Law published Risk and Return in 2015.

The foundational values of South Africa’s constitutional democracy include human dignity, equality, freedom, transparency and accountability, and the rule of law.

However, the latest Rule of Law Index, released by The World Justice Project (WJP), which measures rule of law adherence, shows that over the last year South Africa dropped three positions for overall rule of law performance to 44 out of 126 countries.

The new WJP Rule of Law Index scores show that more countries declined than improved in overall rule of law performance for the second year in a row, continuing a negative slide toward weaker rule of law around the world.

The top three overall performers were Denmark, Norway, and Finland; the bottom three were the Democratic Republic of the Congo, Cambodia, and Venezuela. These top performing countries are generally prosperous and peaceful, in stark contrast to the bottom performers.

The Business for the Rule of Law Framework from the UN Global Compact seeks to engage businesses to support the building and strengthening of legal frameworks and accountable institutions. It acknowledges that all stakeholders, including government and business, must recognize that there is a compelling business case for respecting and supporting the rule of law.

Rule of Law 2030 builds on the empirical research presented in Risk and Return and takes on the challenge set out in the Sustainable Development Goals (SDGs) and UN Global Compact in the Business for Rule of Law Framework by forming strategic, sustainable partnerships with business and government to strengthen the Rule of Law.

The Framework quotes the Risk and Return in support of its conclusion that: “For businesses, an operating environment which is governed by the rule of law, provides the basis for commercial certainty and creates the foundation for long term investment and growth, and sustainable development for all”.

Andrew Skipper is a Partner and Head of Africa at Hogan Lovells

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Opinion

Dele Momodu: Charismatic Gentleman @65

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By Yemi Edun

Aare Dele Momodu is undoubtedly one of the most recognisable names, voices, and personalities to emerge from the world’s most populous Black nation Nigeria.

Anyone who has travelled with Bob Dee would understand the magnetic presence he carries from Atlanta Georgia, Accra to Nairobi, down to Central London. He receives nods of admiration, requests for photos, and warm pats on the back wherever he goes. A true cultural ambassador, effortlessly at ease in rich native attire, which his commanding presence makes look truly majestic, he wears native outfits like royalty.

He is a consummate storyteller, an indefatigable workhorse, and one of the most selfless and hospitable people I know. His generosity is legendary. Mention Dele Momodu at any Marriott Hotel in East Africa, and you can expect the red carpet to be rolled out.

I was stunned at Kotoka International Airport as immigration and customs officials broke into chants of “Ovation! Ovation!” while we walked through, it was surreal but perfectly fitting for a man so deeply respected.

Bob Dee is at home with the old and young, with royalty and regular folk alike. There are countless moments that reflect his goodness, but allow me to share just one:

In Summer 2023, while holidaying in Accra with my family, Aare generously assigned his Ghanaian chef to us for two full weeks serving delicious meals until we had to kindly ask him to pause! Not long after, he flew into Accra and hosted us at La Chaumiere his favourite upscale French restaurant, where his presence is evidently cherished.

As my daughter and I prepared to return to London, we discovered shockingly that her passport had expired just a day earlier. I had to remain behind to resolve the issue. By divine timing, Bob Dee called to check in, and upon hearing the situation, immediately sent his driver. We spent that night in his elegant Accra home.

The next morning, using her Nigerian passport, we flew into Lagos. On his advice, I contacted Mr. Governor, and thanks to that call and Bob Dee’s understanding of the terrain, a new British passport was issued the same day.

Happy Birthday, Aare. A charismatic gentleman, who treats all with warmth and deserved respect.

@yemiedundf

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Opinion

A Tribute of Grace to My Younger Brother, Dele Momodu, @65

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By Mama OluwaBunmi Adedayo

My Beloved Aburo,

Your heart beats with the rhythm of compassion,
Your laughter softens the storms of men,
And your pen—yes, that mighty pen—has built bridges where once stood walls.

Today, I speak not only with words,
But with the rhythm of gratitude,
The poetry of love,
And the dance of legacy.

You are more than a name—
You are Dele Momodu.
A spirit of honour.
A vessel of humility.
A generous soul.
A quiet strength wrapped in dignity and thunder.

In you, kindness flows like a river,
And generosity walks hand in hand with wisdom.

You have fed minds, lifted voices,
And sewn hope into the very fabric of Africa.

You write—oh, how you write—
With fire, with elegance, with truth.
You publish, you speak, you dream aloud.
You carry the soul of a president, even when the title passed by.

But allow me this honest moment:
As I turned through the pages of Ovation Magazine,
I searched for a picture of us—
You and I,
Captured in joy, frozen in memory.
But it was not there.

*Yes, I am jealous!*
I say it with a loving smile.
It’s alright… this time.
But when the next milestone arrives,
*When seventy comes knocking—*
*By the grace of God, we shall all be alive.*
And when that time comes,
Let my picture rise with yours,
Let our laughter live in history.
Let it not be forgotten—*again.*

So, as you are honoured today,
And as voices rise in celebration,
Know this, my dear brother:

You are deeply cherished.
You are profoundly celebrated.
And I—your sister, your friend, your family—
Walk with pride in your light.

May joy crown your 65 years,
And may heaven prepare glory for your 70th.

With all my heart and prayers,
Mama OluwaBunmi Adedayo

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Opinion

Towards a Non-Violent Local Government Election in Lagos State

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By Tola Ogunnubi

The upcoming July 12, 2025 Local Government Election in Lagos State is a litmus test for the 2027 general elections.

The election of executives at the grassroots level to run the affairs of the Local Government has always been a mixture of peace and violence between leading political parties, aspirants, indigenes and settlers in the various area councils. Local government elections is a critical element of democracy and governance which provides a vital pathway for new political participants to engage communities and impact governance from the ground up in their quest for good governance.

In Lagos State, elections have always been characterized with violence and peaceful conducts. Clashes between APC supporters and main opponents’ supporters from the PDP have been reported from various parts of the state like Surulere, Agege, Amuwo-Odofin, Ajeromi Ifelodun, Ojo, Oshodi-Isolo and Kosofe LGAs of the state.

Election violence can diminish voter turnout, influence election outcomes, and erode public trust in the electoral system raising concerns about the legitimacy of results according to Yiaga Africa. Political parties should ensure that the local elections is not a zero sum game, whereby the winners takes it all and the benefits of good governance is limited and retained to only party members and loyalists.

The violence that led to the death of Jide Badaru and one other with several people injured in August 2018 in Surulere Local Government should not be allowed to happen again. According to the cousin of the deceased Mr. Babatunde Badaru, a former Local Government Chairmanship Aspirant in his accounts of the violence that characterizes elections in Surulere LGA.

The wanton destruction of properties, continued threat to lives of opposition supporters should be a thing of the past. Since it is a grassroots election, the African communal sense of being should be displayed during the elections. Perpetrators of electoral violence and their sponsors should be arrested and should be diligently prosecuted so as to deter others who see violence as a viable pathway to electoral victory.

Tola Ogunnubi ANIPR wrote in from Abuja Abuja

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