A proposed law in South Africa that would require foreign-owned private security firms to sell at least 51 percent, or a majority stake, of their businesses to South Africans will deter foreign investors and violate international trade deals, Economist told CCTV Africa.

The measure approved by Parliament would affect the roughly 10 percent of private security companies that are foreign-owned, employing 30,000 to 40,000 people, all of whom are South African citizens, StarTribune reported in June.

The bill is part of a wider debate about the direction of the economy in South Africa, where the government seeks to curb economic inequality and promote black entrepreneurs while seeking to boost slow growth and low levels of investment.

In a speech delivered in June, President Jacob Zuma pledged to implement a “radical” program of social and economic change that will require “far-reaching interventions”.

Neren Rau, CEO of the business chamber, said state “interventionism” was making the economy increasingly difficult to navigate for foreign investors seeking a stable business environment in South Africa.

“We believe that this could change the direction of investment into south Africa. Foreign Direct Investment which has been improving substantially in recent times could dwindle about then start to decline. No Investor want to come into a country and face the risk that he will have to surrender 51 percent of his ownership interest to a local person particularly when such is accompanied by fears and concerns of how he’s going to be compensated,” Rau told CCTV Africa.