In today’s interconnected world, international trade and investment can play a pivotal role in driving economic growth and prosperity.

Amidst this landscape, two essential agreements have emerged on to the global stage, promising to reshape the way nations engage in investment activities: the African Continental Free Trade Area’s (AfCFTA) Protocol on Investment and the World Trade Organization’s (WTO) Investment Facilitation for Development (WTO IFD). These agreements may appear complex but, if implemented, their potential to foster economic development, encourage sustainable foreign investment and create new opportunities for the African continent can transform the international investment landscape.

With a shared objective to make investments more sustainable, efficient and attractive, the AfCFTA adopted the Protocol on Investment earlier in 2023. It is in line with its aims to create a single market through intra-African progressive trade liberalisation and, in turn, improve the business environment for Africa. The investment protocol is targeted at the promotion, facilitation and protection of intra-African investments. It also places emphasis on sustainable investment by outlining some obligations on investors towards the host economies.

Source: weforum.org