/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Portfolio Committee on Trade and Industry today recommended the adoption of the Protection of Investment Bill to the National Assembly. The Bill was originally tabled in Parliament as the Promotion and Protection of Investment Bill, but the Committee unanimously agreed that “Promotion” in the title be removed.

The Committee has been preparing Members for the Bill since July 2015 when it held two workshops, one in July 2015 and another in August 2015. On 5 August the Committee also called for written submissions. The public was given at least three weeks, which was extended by a week and more than 20 written submissions on the Bill were received. UNCTAD gave a presentation on the new generation of investment policies. Extensive public hearings were held in September 2015 after which the Committee engaged in exhaustive deliberations during September and October before the final Committee Report on 4 November 2015.

The Committee therefore rejects all claims by some opposition Committee Members that the “Bill was rammed through by the Committee”. Committee Chairperson, Ms Joanmariae Fubbs, said: “The Committee dealt extensively and thoroughly with the legislation, as is the practice in the Committee with all legislation. The Committee took great care in ensuring that the Bill promotes local as well as foreign investments.”

The purpose of the Bill is, among others, to protect investment in accordance with and subject to the Constitution in a manner that seeks to balance all the rights and obligations of investors.   South Africa provides strong protection to investors in terms of the framework provided by the Constitution and other relevant legislation: However, it is important to develop national legislation that clarifies the standard of protection that an investor may expect in the Republic, and to promote all types of investments by creating a predictable business environment that is readily understandable to an investor.

“The amended Bill provides all the protection foreign investors might require, including protection of property and the right to ‘repatriate their funds’.” said Ms Fubbs. She added that “the modern global investment paradigm is shifting towards sustainable development and inclusive growth”. Recently the European Union among other developed countries recognise this. Indeed South Africa is not unique in its decision to modernise its investment legislation. South Africa continues to welcome Foreign Investment especially productive investment.

The SADC has already decided to amend the Finance and Investment Protocol in a manner that will be consistent with the Bill

The Committee agreed that it is not necessary to refer to other legislation for physical property security as the Section 25 of the Constitution upholds this and draft legislation, like the Expropriation Bill, and can address this issue.

The Bill provides for security of investment, meaning that the Republic must accord foreign investors and their investments a level of security as may be generally provided to domestic investors, subject to available resources and capacity. Investors will have the right to property in terms of the Constitution and a foreign investor may, in respect of an investment, repatriate funds subject to taxation and other applicable legislation.

Members deliberated extensively on issues arising from disputes and finally it was agreed that when the Department is “party to a dispute, the parties may jointly request the Judge President ….the High Court to appoint a mediator”.

After two months of intense and thorough deliberations, the amended Bill was supported by a majority of the members in the Committee.

The Bill will now be sent to the National Assembly for debate and adoption.

Issued by The Chairperson of the Portfolio Committee on Trade and Industry, Ms Joanmariae Fubbs