On the 18th, the European Commission concluded negotiations with Angola on a Sustainable Investment Facilitation Agreement (AFIS) – the first agreement of this type signed by the EU.
These aim to promote sustainable investments in the context of their engagement with African partners. The AFIS EU-Angola will allow to attract and expand sustainable investments, while integrating commitments in terms of sustainable development in EU-Angola relations.
According to the European Commission, the agreement should contribute to boosting sustainable investment in Angola and the EU will also provide technical support to put it into practice. Angola seeks to diversify its economic model, currently based on the raw materials and energy resources available.
AFIS will also support Angola's efforts to improve the investment climate for foreign and local investors, especially small and medium-sized enterprises. In addition to the agreement reached, Angola intends to join the Economic Partnership Agreement between the EU and the Southern African Development Community (EU-SADC EPA), in order to guarantee privileged access for Angolan exports to the EU market.
The conclusion of sustainable investment agreements with Africa and the Southern Neighborhood is part of the wider EU strategy to intensify dialogue with African countries through the 'peer partnership' approach. The aim is to unlock economic potential, foster economic diversification and promote inclusive and sustainable growth. These agreements are intended to strengthen sustainable trade and investment linkages between both continents and within Africa itself, in line with the Global Gateway strategy.
Main elements of the agreement:
Making investments more sustainable by:
Based on the conclusion of negotiations, the agreement will now be legally reviewed by the parties and translated into all EU languages, before being proposed for signature and further adoption under the respective EU and Angolan procedures. Regarding the EU, it will have to be approved by the European Parliament and the Council of the European Union. Angola is the seventh most important destination for EU investments in Africa, and represents 5.4% of EU foreign direct investments in the continent, which amounted to EUR 10 billion in 2020. Angola's investment volume in the EU was 2.4 billion euros in 2020.
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