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Market Brief - Africa Economic Financial Brief - From 28 October to 01 November 2013
Bilateral Investment Treaties (BITs) are binding international treaties between two states under which each state undertakes certain reciprocal obligations in respect of any investments made by nationals of the other state within its territory. These treaties generally oblige each state party to accord fair, equitable and non-discriminatory treatment to investments of nationals of the other state. Whilst extensive use is being made of BITs by countries across the world, South Africa is currently phasing out or renegotiating all of its BITs. In 2013, South Africa cancelled BITs with Luxembourg, Spain, Belgium, Germany and Switzerland as the government seeks to create new laws governing investments in South Africa. These changes in South Africa’s policy initiatives with respect to FDI are attracting questions regarding the costs and benefits of BITs in fostering FDI.