Dear Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour,

I hope this email finds you well. I am writing to propose the establishment of a Foreign Investment Compensation Initiative in South Africa, aimed at providing compensation to foreign companies that experience significant losses after a certain period of time and have exhausted all reasonable efforts to generate profits.

The purpose of this initiative is to foster a favorable investment climate in South Africa by addressing the concerns and risks faced by foreign investors. By offering compensation to eligible companies, we can attract and retain foreign direct investment, stimulate economic growth, and enhance our global competitiveness.

Outlined below are the key components of the proposed Foreign Investment Compensation Initiative:

1. Eligibility Criteria: We will define specific eligibility criteria for foreign companies to qualify for compensation. This may include a minimum investment amount, investment period, and evidence of having explored all profit-making avenues.

2. Compensation Process: We will establish a streamlined process for foreign companies to apply for compensation. An independent body or agency will be designated to review compensation claims, ensuring fairness and transparency.

3. Compensation Calculation: Clear guidelines will be provided for calculating the compensation amount. Factors such as the initial investment, investment duration, financial performance, and market conditions will be considered to determine a reasonable and equitable compensation.

4. Dispute Resolution: A robust dispute resolution mechanism will be established to handle any disagreements or appeals related to compensation claims. This will ensure a fair and impartial process for all parties involved.

5. Funding: We will devise a sustainable funding mechanism for the compensation initiative. Potential options include contributions from foreign companies, a portion of investment-related fees, or other suitable revenue sources.

6. Reporting and Transparency: Regular reporting on the compensation process will be mandated to maintain transparency and accountability. This will include the number of claims received, approved, and rejected, as well as the total compensation disbursed. Confidentiality of sensitive business information will be safeguarded throughout the process.

I believe that the Foreign Investment Compensation Initiative will significantly enhance South Africa's attractiveness as an investment destination and demonstrate our commitment to supporting foreign investors. By providing this safety net, we can mitigate investment risks and encourage long-term partnerships with foreign companies.

I kindly request your support and involvement in considering this proposal. Your expertise and insights are invaluable in shaping a robust and effective initiative that aligns with South African laws and regulations. I would greatly appreciate the opportunity to discuss this proposal further and explore the next steps.

Thank you for your attention, and I look forward to your positive response.

Sincerely,