AfCFTA: Protocol on investment to lead to creation of a Pan African Investment Agency?

AfCFTA: Protocol on investment to lead to creation of a Pan African Investment Agency?

Calls have been made by several trade experts on the continent for the establishment of a Pan African Investment Agency.

It is said that there are discussions for a Pan African Investment agency to be created from the protocol for it to become part of the AfCFTA structures.

The calls are on the back of ongoing discussions on the Protocol for Investment by the Council of Trade Ministers for the overall successful implementation of the African Continental Free Trade Area (AfCFTA) agreement.

Trade experts are of the view that, rather than it simply being one of the numerous protocols created to facilitate the successful implementation of the AfCFTA, a Pan African Investment Agency created out of it will be more effective in enforcing the measures outlined in the protocol.

The AfCFTA Protocol on Investment is expected to enhance investment governance and policy coordination and cooperation across the continent.

It is expected to address barriers to investment entry in Africa, reduce time and costs of investment approvals, enhance transparency, improve efficiency and address fragmented investment regulatory frameworks on the continent.

Speaking in a virtual seminar on the AfCFTA Investment Protocol, Joseph Rotich, a negotiator with Kenya’s Ministry of Trade, disclosed some provisions made in the protocol which is currently being discussed by a committee under the supervision of the Council of Trade Ministers.

According to him, some of the provisions made in the protocol include investment promotion which looks at the investment strategies and mechanisms to be used by State parties and investors under the trade agreement.

Another provision is the non-discrimination principle of investors which prohibits States from discriminating against investors from other countries.

Discrimination against investors, the protocol however, notes, can be allowed if it is done to protect public policy, climate change, the health and safety of the citizens.

Then there is also the provision for the obligations and rights of State parties and investors.

The protocol also makes provisions for investment related dispute settlements between different States and an investor and the State.