The AfCFTA Agreement will include a protocol on investment – to be negotiated in phase II. Meanwhile, the technical issues on investment are under consideration, and the draft legal text is expected to be ready for adoption by the January 2021. Thereafter, the AfCFTA Investment Protocol will form an integral part of the AfCFTA Agreement and enter into force 30 days after the deposit of the 22nd instrument of ratification (Art. 23(3)). How can the Investment Protocol advance the broader objectives of the AfCFTA?
The Protocol should establish an investment governance framework to facilitate intra-Africa investment, that would promote sustainable socio-economic and industrial development as well as enhance the competitiveness of the African countries. Indeed, Africa countries need FDI to promote economic growth and development, create jobs and alleviate poverty.
Increased FDI flows do not automatically create economic growth and development and employment or eliminate poverty in the host economy. It is not the quantity but quality of FDI that matters. The AfCFTA Investment Protocol should facilitate quality FDI that would support the developmental needs of the African countries and continent at large.
The Protocol should give States policy space (or regulatory freedom) to determine the right kind of FDI, in accordance with their development goals.
The Protocol could also include legal obligations demanding responsible business conduct.
Although the AfCFTA Investment Protocol will cover intra-Africa FDI/investment, some of the provisions (e.g. MFN) may well be beneficial for investment from outside the continent.
CENTER FOR AFRICAN STUDIES
Center for Africa Studies (AFRAM) which located in Ankara, is an organization facilitating under the administration of African Affairs Council (AFAC). It makes various researches about Africa to enhance economic and cultural bounds between Africa and Turkey. AFRAM’s publishings has been shared with different institutions as they require to obtain.
Africa Observatory is one the publishing of AFRAM and it has been published each two weeks. It has been delivered to different institutions via e-mail.