The European Commission has concluded negotiations with the Republic of Angola on a Sustainable Investment Facilitation Agreement (SIFA) – the first EU agreement of this kind. The EU is pursuing such agreements to promote sustainable investments in its engagement with African partners. The EU-Angola SIFA will make it easier to attract and expand investments while integrating environment and labor rights commitments in the EU-Angola relationship. The EU is committed to boosting sustainability in its trade policy, as set out in its new trade strategy.
The EU will also offer technical assistance to implement the deal, which will help Angola attract more sustainable investment. This occurs as Angola works to diversify its economy, which is presently focused on its wealth of natural resources and energy. Additionally, the SIFA will assist Angola in enhancing the environment for both domestic and international investors, particularly for small and medium-sized businesses. In addition to the deal struck today, Angola plans to ratify the EU-SADC Economic Partnership Agreement (EPA) to grant preferential access to the EU market for exports from that country.
The Sustainable Investment Facilitation Agreement (SIFA) between the European Commission and the Republic of Angola is the first of its type in the EU. The EU is pursuing such agreements to encourage sustainable investments in its interactions with African countries. The EU-Angola SIFA will facilitate the integration of environmental and labor rights commitments into the EU-Angola partnership, making it simpler to draw in and increase investment. According to its new trade strategy, the EU is dedicated to strengthening sustainability in its trade policy.
The EU will also offer technical assistance to implement the deal, which will help Angola attract more sustainable investment. This is happening at a time when Angola is attempting to diversify its economy, which is now based on its plentiful raw commodities.
Pursuing sustainable investment agreements with Africa and the Southern Neighbourhood is part of the broader EU strategy to increase engagement with African countries through the “partnership of equals” approach. The goal is to unlock economic potential, foster economic diversification, and promote inclusive and sustainable growth. Such agreements are designed to enhance further sustainable trade and investment links between both continents and within Africa, in line with the Global Gateway.
Key elements of the agreement
Making investments easier by:
- Enhancing transparency and predictability of investment-related measures, for example, by publishing all investment laws and conditions and promoting using single information portals for investors.
- Simplifying investment authorization procedures and fostering e-government.
- Facilitating interactions between investors and the administration, establishing focal points and stakeholder consultations.
Making investments more sustainable by:
- Promoting sustainable development, including commitments to implement international labor and environmental agreements, such as the Paris Agreement.
- Promoting responsible business conduct through the uptake of international standards in companies.
- Strengthening bilateral cooperation on investment-related aspects of climate change policies and gender equality policies.
- Ensuring dialogue with civil society on the implementation of the agreement.
Next steps
Based on today’s conclusion of the negotiations, the Agreement will now be legally revised by the parties and translated into all EU languages before being proposed for signature and later adoption under the respective procedures of the EU and Angola. For the EU, it will need to be approved by the European Parliament and the Council of the European Union.
Background
Angola is the EU’s 7th African investment destination, covering 5.4% of EU foreign direct investments in the continent, amounting to EUR 10 billion in 2020. Angola’s investment stock in the EU amounted to EUR 2.4 billion in 2020.
At the 5th European Union-Angola Ministerial Meeting in September 2020, both sides confirmed their intention to start exploratory discussions on a bilateral investment agreement, focusing on investment facilitation. On 23 March 2021, the Commission adopted a recommendation for a Council Decision authorizing the opening of negotiations with Angola on an agreement on investment facilitation. On 26 May 2021, the Council of the European Union authorized the opening of negotiations and gave its negotiating directives. On 22 June 2021, the EU and Angola launched negotiations on a Sustainable Investment Facilitation Agreement.
For more information
Text of the EU-Angola Sustainable Investment Facilitation Agreement
Factsheet on the EU-Republic of Angola Sustainable Investment Facilitation Agreement
Factsheet on Investment facilitation in Africa
Original source: https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6136
