III. Model Investor Protection Framework

(This is the keystone—without it, capital stays out)

This framework should be codified, published, and enforceable, not discretionary.

1. Legal & Judicial Guarantees

  • Independent commercial courts

  • International arbitration (e.g., New York / London–style enforceability)

  • Clear property and concession rights

  • No retroactive regulation

Red line: No “interpretive flexibility.”

2. Capital & Currency Protection

  • Free capital repatriation

  • Dividend guarantees

  • FX convertibility

  • Offshore escrow mechanisms

Red line: No trapped capital.

3. Ownership & Governance Rights

  • Foreign ownership thresholds clearly defined

  • Board representation and veto rights

  • IFRS accounting

  • Mandatory external audits

Red line: No shadow ownership.

4. Anti-Corruption & Compliance

  • Zero-tolerance procurement rules

  • Disclosure of beneficial ownership

  • On-site compliance officers

  • Whistleblower protections

Red line: No informal intermediaries.

5. Phased Investment Protection

  • Tranche-based capital deployment

  • Performance milestones

  • Step-in rights for lenders

  • Termination and unwind clauses

Red line: No “all upfront” exposure.

6. Exit Certainty

  • IPO pathways

  • Strategic sale rights

  • Buy-back formulas

  • Arbitration-protected exits

Red line: No hostage investments.