UNIDROIT Model Law on Warehouse Receipt is a Step Towards Achieving the UN SDGs in Africa

Abstract

A warehouse receipt is a document of title, which allows farmers to use their crops as a commodity to secure a loan. The warehouse receipt system can boost the economic development of a country and attract foreign investments. This article explores how the UNIDROIT Model Law on Warehouse Receipt (hereafter UMLWR) can contribute to the achievement of the United Nations Sustainable Development Goals (hereafter UN SDGs). The first part of the article will explore the current situation in Africa regarding achieving the UN SDGs. In the second part of the article, a correlation will be drawn between the potential impact of the UMLWR and the sustainable development of Africa. Member states of the Organisation for the Harmonisation of Business Law in Africa (hereafter OHADA) will be used as a case study. In particular, the article will focus on the UMLWR. OHADA was chosen as a case study, not only because OHADA member states have undeveloped legal norms in the field of warehouse receipt, (or no rules at all) but also because Africa, including OHADA member states, is far behind in the achievement of the UN SDGs. The article identifies that the UMLWR can have a direct and indirect impact on the UN SDGs. Thus, the model law can directly impact the achievement of Goal 1, ‘Elimination of Poverty’, and Goal 2, ‘Elimination of Hunger and Achievement of Food Security’, of the UN SDGs. However, the UMLWR can also have an indirect impact on the achievement of the UN SDGs.