Regulations for foreign investor act weighted towards dispute settlement
New legislation to replace bilateral treaties provides for low-level mediation unbefitting high-level business, writes Azwimpheleli Langalanga
On December 15 2015, President Jacob Zuma assented to the controversial Protection of Investment Act when much of the South African public was on a festive holiday break. This piece of legislation is meant to replace the bilateral investment treaties that SA terminated in 2012, resulting in consternation and outcry from the international investment community based in the country. Zuma’s approval of the act brought the policy debate about the termination of these treaties one step closer. On December 30 2016, Trade and Industry Minister Rob Davies published the long-awaited investment regulations that will bring the act into force. Regulations lie within the purview of the Department of Trade and Industry and are not subject to a parliamentary process, so Davies is empowered to exercise his discretion on what to include in or exclude from the regulations. These regulations have been published for public comment, open until the end of January. All investors should seek to understand w...