Award

West African Aquaculture Ltd, Kurt Lennart Hansson and Martje Bolt Hansson v. Republic of The Gambia

ICSID · Investment (ICSID and treaty) · The Gambia · 4 Apr 2024

Why it matters

This case is significant as it demonstrates the protection of foreign investors under domestic investment law in The Gambia, holding the state accountable for unlawful expropriation by a former regime. The award of 95% of claimed damages plus full costs sets a strong precedent for investor protection in West Africa and highlights the consequences of arbitrary government actions.

Summary

The case involved Swedish and Australian investors who built a tiger-prawn farming business in The Gambia over 15 years. In 2015, the government of former president Yahya Jammeh seized the facility without compensation. The investors sought compensation for years before initiating an ICSID arbitration under The Gambia's domestic investment protection law. The tribunal found the expropriation unlawful and ordered The Gambia to pay damages covering 95% of the claimed losses, plus 8% interest from the date of seizure, and full legal and arbitration costs. The current value exceeds £20 million. The case was hard-fought on jurisdiction, merits, and damages, with seven fact witnesses and four experts. The award underscores the rule of law and the consequences of arbitrary state actions.

The detail

Parties: West African Aquaculture Ltd, Kurt Lennart Hansson and Martje Bolt Hansson v. Republic of The Gambia

Case number: ICSID Case No. ARB/18/10

Outcome: The Tribunal ordered The Gambia to pay damages to the Claimants for unlawful expropriation of their tiger-prawn farming business, awarding 95% of claimed damages plus interest at 8% from the date of the measure to payment, and full costs.

Quantum: in excess of £20M

Applicable law: The Gambia's domestic law on investment protection; ICSID Convention and Arbitration Rules

Issues in play: The case involved the collision between the investors' right to compensation for expropriation under domestic investment law and the state's sovereign right to expropriate property, with the tribunal finding the expropriation unlawful due to lack of compensation.

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