Foreign Investment Protection Laws in Zimbabwe: A Comparison of the Zimbabwe Investment and Development Agency Act [Chapter 14:37] and the Protection of Investment Act of South Africa, Act 22 of 2015

Abstract

Since 1980, Zimbabwe has adopted various measures and enacted multiple laws
which were aimed at promoting and protecting foreign investment. These laws have
been subject to tumultuous debates between various schools of thought. These
measures and laws were influenced by the various approaches that Zimbabwe
adopted towards foreign investment at different periods. This paper argues that
Zimbabwe has subscribed to different theories underpinning foreign investment and
also identifies the recognised forms of foreign investment in Zimbabwe. In this
paper, it is established that Zimbabwe has used and currently uses the both Bilateral
Investment Treaties (Hereinafter BIT) and national legislation to protect foreign
investment. This paper comes from the premise that Zimbabwe's foreign investment
legal regime has been chaotic over the years. It contends that, while Zimbabwe has
now codified previously incongruent legislation under the Zimbabwe Investment and
Development Agency Act [Chapter 14:37] (hereinafter ZIDA Act) and taken steps to
reverse to varying degrees, controversial policies and laws such as those relating
to land reform program and indigestion, scepticism remains about the investorfriendliness and protections granted to foreign investment in Zimbabwe. It is against
this background that this paper seeks to examine the foreign investment protection
mechanism per ZIDA Act and compare it with the Protection of Investment Act 22
of 2015 of South Africa (hereinafter PIA). The main aim of the comparison is to
identify the similarities and differences between the two Acts and to identify the
lessons that Zimbabwe can draw from the PIA. This paper also identifies some of
the gaps and inconsistencies in Zimbabwe’s approach to foreign investment
protection and recommends corrective measures