Investment Codes as a Restraint: The Experience of Southern Africa

  • David A. Ailola
Part of the Studies on the African economies book series (SAES)


The law of foreign investment, as is well known, is concerned primarily with the provision of incentives, guarantees and protection to investors. Many countries possess valuable natural wealth and human resources, and so on, but they lack the capital skills and technology to exploit them for the general benefit of their peoples.1 There is, therefore, a great need for these instruments to be imported from the rich and industrialized countries of Europe, America, Japan and the emerging economic giants of South East Asia. But as many countries are in need of these instruments there is, as is to be expected, a virtual scramble for them. Investment-seeking countries, especially the less developed ones have had to compete against each other for the attention and favour of investors. To this end they make offers of incentives and other benefits to investors to attract them. These include income and profit tax reliefs, depreciation allowances, reliefs on customs duties, revaluation of assets, tax-free interest on loans, income-tax free salaries for foreign personnel, remittance of profits as well as guarantees of property rights in statutory codes or constitutions.


Foreign Investment Arbitral Award Southern African Country Depreciation Allowance Arbitration Tribunal 
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© Centre for the Study of African Economies 2000

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  • David A. Ailola

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