Dr. Mukhisa Kutiyi, the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), praised South Africa for its investment reform saying the country’s efforts engendered global quest for investment policy reforms.
Dr. Kutiyi was speaking at the on-going 2016 Africa Trade Week in Addis Ababa, Ethiopia when he applauded South Africa for leading global investment reform.
He celebrated the South African government for the decision to announce the friendly reform clause to its old stock of investment agreements.
“Everybody in the developing community knows that the stock of investment agreements that were signed particularly in the era of structural adjustment were too unbalanced, promising the investor everything without obligations and taxpayers carrying all the burdens. This has required renegotiation/rearrangement and for a long
This has required renegotiation (and) rearrangement and for a long time, there have been a lot of foot-draggings.
So, the decision of South Africa to announce a sunset clause to the old stock of investment agreements may have sound radical and even very risky, but to the developing community it was an act of leadership which has open doors…now even the majors (have) agreed that we must start embracing a new framework for investment agreements.”
To Dr. Kituyi, South Africa has triggered a movement towards the right direction for global investment policy making.
“I don’t think the momentum that has now spread even to the developed countries including the recent adoption of a new framework for investment agreement making at the G20 Summit in China would have been possible without the first steps taken by South Africa,” added Dr. Kituyi.
The 2016 Africa Trade Week was designed as a fresh Pan-African platform to advance intra-Africa trade talks among numerous stakeholders. South Africa is being represented by the Trade and Industry Minister Rob Davies.