ANNOUNCEMENT 14 Sep 2012In September 2012, the government of South Africa announced altered domestic business conditions for foreign investors.
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Department of Trade and Industry (South Africa) press release of September 23rd, 2012: http://www.thedti.gov.za/editmedia.jsp?id=2504
During a visit to UNCTAD in Geneva, South Africa's Trade and Industry Minister, Dr. Rob Davies, announced that Cabinet has instructed that all 'first generation' Bilateral Investment Treaties (BITs), which South Africa signed shortly after the democratic transition in 1994, many of which have now reached their termination date, should be reviewed with a view to termination, and possible renegotiation on the basis of a new Model BIT to be developed.
Davies said that this is in line with a three-year BITs review that was concluded in 2010. According to him, Cabinet understood that the relationship between BITs and Foreign Direct Investment (FDI) was ambiguous at best, and that BITs pose risks and limitations on the ability of the government to pursue its constitutional-based transformation agenda.
Shortly before this announcement, South Africa terminated an investment treaty with Belgium and Luxembourg when it expired.