Document background
The Investment Framework Agreement serves as the primary legal document structuring investment relationships in South Africa, typically used for significant capital deployments or ongoing investment programs. It is designed to accommodate the unique aspects of South African investment law, including B-BBEE requirements, exchange control regulations, and the Protection of Investment Act provisions. This agreement is particularly valuable when establishing long-term investment relationships that may involve multiple funding rounds or complex regulatory requirements. The document incorporates necessary safeguards for both investors and investee companies while maintaining flexibility for future investments and ensuring compliance with South African regulatory frameworks. It is commonly used by institutional investors, private equity firms, and development finance institutions looking to establish a structured approach to their investments in South African enterprises.
