In instances where disputes arise in the course of investment transactions between a foreign investor and a host state, parties wishing to avoid the court process often attempt to settle these disputes by means of arbitration. The International Centre for Settlement of Investment Disputes (ICSID) has arguably been seen to provide the most effective venue for the settlement of investment disputes. However, the term ‘investment’ is not defined in the ICSID Convention, which has led to a multiplicity of approaches being taken by arbitral tribunals and academics to interpret and apply the concept. This has further led to a lack of coherence as to the understanding of the concept, necessitating a contemporary solution.