No longer a fair game?
Natasha Mellersh
What are the next steps for investment protection in South Africa, as
the country draws up new legislation governing foreign direct
investment following the termination of a number of bilateral investment
treaties?
Concerns are growing in business communities both in Europe and South
Africa as the South African government edges closer to drawing up its
proposed Promotion and Protection of Investment Bill 2015.
As covered recently
by King & Wood Mallesons, the Bill, which will govern investment
protection in South Africa in future, is expected to introduce
significant changes affecting the way foreign private investors do
business in the country.
The new proposals come after South Africa’s government unilaterally
terminated a number of bilateral investment treaties (BITs) with its
most important EU investors – including the United Kingdom, Germany,
Italy, Spain, The Netherlands, Belgium and Luxembourg. This was done
mostly without any public notification, leaving many diplomats shocked
and surprised.
With EU investors making up approximately 77% of foreign direct
investment (FDI) in the country, why have they suddenly become the
government’s prime target in reforming investment protection?
