Document background
The Investment Guarantee Agreement serves as a crucial instrument for protecting investments in South Africa, particularly in contexts involving significant capital deployment or cross-border transactions. This document type emerged from the need to provide investors with clear, legally enforceable protections while adhering to South Africa's investment protection regime that replaced the bilateral investment treaty system. The agreement typically details the scope of guarantee coverage, claim procedures, and compliance requirements with local regulations such as the Protection of Investment Act and B-BBEE requirements. It's particularly vital for projects requiring long-term investment security, major infrastructure developments, or investments in regulated sectors where government interaction is significant.
