The Portfolio Committee on Trade and Industry yesterday received an initial briefing on the Promotion and Protection of Investment Bill.
Committee Chairperson Ms Joanmariae Fubbs said the uncoordinated manner in which investments are currently taking place has caused concern. “The Bill seeks to bring all investments in line with the Constitution and to safeguard the public interest.”
The Committee heard that the Bill confirms South Africa’s commitment to an open, transparent environment for foreign investment that supports sustainable development and international human rights law.
The Committee heard that the Bill provides for the legislative protection of investors and the promotion of investment. It aims to achieve a balance of rights and obligations that apply to all investors, whether local or foreign as well as that of the State.
The purpose of the Bill is, amongst other things, to promote and protect investment in accordance with and subject to the Constitution in a manner that balances the public interest and the rights and obligations of investors.
According to one of the provisions of the Bill, security of investment, the Republic must accord foreign investors and their investments the same level of security that is 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, transfer funds subject to taxation and other applicable legislation.
The balance in the legislation makes it clear that the idea is not to just protect local investors at the expense of foreign investors.
A foreign investor that has a dispute in respect of action taken by the government that affects an investment, may with six months of becoming aware of the dispute, request the department or any other competent authority to facilitate the resolution of such a dispute by appointing a mediator or other competent body.
The Committee raised the issue of “like circumstances” not being defined and inconsistency with Southern African Development Community Finance and Investment Protocol.
Ms Fubbs said that the issues of national treatment, protection of property, dispute resolution and regulations were raised as keys areas for consideration. She said the Committee will look carefully at the definitions as well as what investment refers to.
The Committee has received 14 written submissions so far on the Bill and public hearings for oral submissions are set to take place on 11, 15 and 16 September 2015 at Parliament.
For media enquiries or interviews with the Chairperson, please contact:
Rajaa Azzakani
Tel: 021 403 8437
Cell: 081 703 9542
E-mail: razzakani@parliament.gov.za
