Legal Protection of Foreign Direct Investment. A Critical Assessment with Focus on South Africa and Zimbabwe

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Chapter 3 2 1 International treaty models on admission of investment:
UNCTAD has identified five practices or models that have mutually evolved in the present international investment treaties resulting from increasing pressure to liberalise investment. The five models include: investment control; selective liberalisation; regional industrialisation programme; mutual NT and combined NT and MFN. The said models present a point from complete state control over entry and establishment on the one hand, to entry and establishment rights subject to limited exceptions, on the other hand. It should be noted that these models are merely international legal and policy options surrounding the admission and establishment of FDI in host countries. Perhaps more importantly is that these models may play an educational role suggesting to governments various possible approaches that are generally acceptable.
3 2 1 1 Investment control:
The investment control model concedes restrictions and control on the admission of foreign investment in accordance with the host country's laws and regulations. Article 2 (1) of the SADC FIP reflects the investment control model. In this model, the host country has the discretion in deciding whether and on what conditions FDI may be admitted into its territory. Investment control model retains the host state's sovereign right, under CIL, to control the entry and admission of foreign investment within its territory. Investment control provisions are common to most BITs and IIAs. The WB Guidelines affirm state investment control and assert that each state retains the right to make regulations to govern the admission of foreign investments. The restrictions imposed by a host country in exercising the right of control to admit FDI may comprise of absolute restriction or limits on foreign presence or may involve discretionary authorisation, registration and reporting requirements.
3 2 1 2 Selective liberalisation:
The selective

Talkmore Chidede is lawyer by profession with two years of experience in legal compliance, research and consultancy as well as policy advocacy. He holds a Master of Laws Degree (LLM) (cum laude) in international investment law and also holds a Bachelor of Laws Degree (LLB), both from the University of Fort Hare, East London South Africa. He is certified in Right to Development in Africa and Indigenous Peoples' Right, having earned both certificates from the the University of Pretoria, South Africa. He has extensive experience in international investment law, human rights law, corporate and commercial law as well as development law.