SCHOOL OF LAW

L401– INVESTMENT LAW

COURSE DESCRIPTION

Investment Law covers a broad array of issues relating to activities that economically benefit a
country. As a course, it encompasses the meaning of the term ‘investment’, legal framework,
special economic zones, small and medium enterprises, political risk, bilateral investment
treaties, and settlement of investment disputes.

RATIONALE

Much of the global issues emanate from the treatment accorded to investors, whether local or
foreign. Thus, the course is evenly poised to address topical issues and provide guidance on the
ever-changing trends. The course uniquely balances international and regional investment
issues with the domestic.

COURSE AIMS

The aims of the course are:

a) To equip students with a critical understanding of the fundamental concepts of

international investment law and how these have influenced the local concept of
investment law.

b) To equip students with the requisite tools to enable them to advise on matters relating
to investment and the law;

c) To equip students with knowledge regarding the modern trends in investor protection;

d) To help students appreciate the necessity of local investment as a panacea to economic

malaise.

1
COURSE OBJECTIVE

The objective of the course is:

a) To discuss the nature, theories, ideology, and rationale of investment law, ;

b) To discuss the concept of special economic zones (SEZ) and their relevance to Zambia’s
quest for development;

c) To analyse the law on small and medium enterprises;

d) To examine the nature of bilateral investment treaties and their place in Zambia;

e) To discuss political risk and the resolution of state-investor disputes.

LEARNING OUTCOMES

At the end of the course, the students will:

a) Be able to apply the principles in investment law to resolve a practical issue;

b) Know the law that regulates investment in Zambia;

c) Understanding the international rules regarding resolution of disputes between the state
and the foreign investor.

COURSE STRUCTURE

UNIT 1 INTRODUCTION TO FOREIGN INVESTMENT

 Concept of foreign investment

 Classification of foreign investment
 Economic theories on foreign investment
 Political ideology on foreign investment
 History of foreign investment
 Rationale for foreign investment

UNIT 2 LEGAL FRAMEWORK ON INVESTMENT

 Historical development of the domestic legislation on investment

 Institutional Framework

2
  Sectors for investment
 Investment Incentives
 Certificate of Registration, Duration, and Revocation

UNIT 3 SPECIAL ECONOMIC ZONES

 Nature of Special Economic Zones

 Development and Operation of SEZs
 Significance and Perceived challenges

UNIT 4 SMALL AND MEDIUM ENTERPRISES

 Historical development of SMEs

 Legal Framework Governing SMEs
 Promotion of SMEs
 Prospects and Challenges of SMEs

UNIT 5 BILATERAL INVESTMENT TREATIES

 Evolution of BITs
 Structure of a Treaty
 Current issues under the BITs
 SADC Model BIT

UNIT 6 POLITICAL RISK IN FOREIGN INVESTMENT

 Investor motivation for foreign investment

 Political Risk
 Nationalization
 Expropriation

UNIT 7 SETTLEMENT OF INVESTMENT DISPUTES

 International Centre for Settlement of Investment Disputes (ICSID)

 SADC Tribunal
 COMESA Court of Justice

MODE OF DELIVERY

The course will be delivered either virtually (online) or in physical classes.

3
ASSESSMENT

The assessment is as required by the University:

a) 10% for the assignment/presentation/test

b) 20% for the mid-semester examination
c) 70% for the final examination

GRADING

Grading Scheme:
Marks Grades Points Classification
86% - 100% A+ 5 Distinction
76% - 85% A 4 Distinction
66% - 75% B+ 3 Meritorious
61% - 65% B 2 Satisfactory
56% - 60% C+ 1 Clear Pass
50% - 55% C 0 Pass
0% - 49% D 0 Fail

PRESCRIBED READINGS

C Mulenga Foreign Direct Investment and the Law in Zambia (Juta: Cape Town 2020)

RECOMMENDED READINGS

M Sornarajah International Law on Foreign Investment (Cambridge University Press: Cambridge

2010)

Rudolf Dolzer and Christoph Shreuer Principles of International Investment Law (Oxford
University Press: Oxford 2008)

Surya P Subedi International Investment Law Reconciling Policy and Principle (Hart Publishing:
Oxford and Portland 2010)

STATUTES

Zambia Development Agency Act No. 17 of 2022

Investment, Trade & Business Development Act No. 18 of 2022