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Home > Legal & Regulatory docs.

AFCFTA - Protocol on Investment to the Agreement Establishing the African Continental Free Trade Area - Draft November 2021

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Year

2021

Summary

Protocol on Investment to the Agreement Establishing the African Continental Free Trade Area (AFCFTA) - Accra, November 2021

Preamble

We, the State Parties to the Agreement Establishing the African Continental Free Trade Area,

REAFFIRMING the African Union's vision for Agenda 2063 of an integrated, prosperous, and peaceful Africa driven by its own citizens and representing a dynamic force in international arena;

HAVING IN MIND the objectives of the Agreement Establishing the African Continental Free Trade Area signed at Kigali, Rwanda on 21 March 2018;

TAKING INTO ACCOUNT Article 7 of the Agreement Establishing the African Continental Free Trade Area which requires State Parties to enter into Phase II negotiations in respect of, among other areas, investment;

DETERMINED to establish a clear, transparent, predictable and mutually- advantageous continental framework of principles and rules for investment through a comprehensive binding instrument on investment;

RECALLING Agenda 2030 for Sustainable Development, as contained in Resolution A/RES/70/1 of the United Nations General Assembly, and in particular the 17 Sustainable Development Goals;

TAKING INTO ACCOUNT the Investment Policy Framework for Sustainable Development of the United Nations Conference on Trade and Development (UNCTAD) and other relevant UNCTAD instruments that support new generation investment policies for inclusive growth and sustainable development;

MINDFUL of best practices incorporated in agreements and other legal instruments on investment adopted by the Regional Economic Communities as well as bilateral investment treaties concluded by African States and national investment laws;

COGNISANT of the increasing importance of trade and investment for the growth and development of Africa, and the role played by the private sector in productive capacity, regional, continental and global value chains, increased economic growth and sustainable development;

RECOGNISING the important contribution investment can make to the sustainable development of the State Parties, including the reduction of poverty, increase of productive capacity, economic growth, the transfer of technology, and the furtherance of human rights and human development while understanding that sustainable development requires the fulfilment of the economic, social and environmental pillars that are embedded within the concept;

DESIRING to promote within State Parties an overall attractive investment climate conducive to the development of a more vibrant and dynamic private sector that encourages mutual beneficial partnerships, facilitates job creation, promotes technology transfer, supports long-term economic growth and contributes effectively to social development and the fight against poverty;

AFFIRMING the desire to promote transparency, accountability, good governance and responsible business conduct in the investment environment;

SEEKING to achieve an overall balance of the rights and obligations between State Parties and investors under this Protocol;

REAFFIRMING the right of State Parties to regulate within their territories and to introduce new measures with a view to meeting national public policy objectives and to promoting sustainable development objectives;

REAFFIRMING the importance of encouraging investment activities that benefit underrepresented groups, including women, youth and small and medium enterprises;

TAKING INTO ACCOUNT the relevant obligations of State Parties under international law and applicable international agreements;

HAVE AGREED AS FOLLOWS:

...

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