On 9 October 2023, the Council adopted a decision on the signature of the sustainable investment facilitation agreement (SIFA) between the European Union and Angola. This agreement will make it easier to attract and expand investments while integrating environment and labour rights commitments in the EU-Angola relationship.
Raw materials and energy resources
This is the first agreement on sustainable investment facilitation that the EU ever negotiated. Angola’s economy is currently based on its abundant raw materials and energy resources. Thanks to this agreement, Angola will be able to diversify its economic model and improve the investment climate for foreign and local investors.
Angola is the 7th largest investment destination on the African continent for investors from the EU, covering 5.4% of the EU’s stock of foreign direct investment (EUR 9.9 billion of FDI in 2020).
Main elements and benefits of the SIFA
- covers all economic sectors to encourage diversification to new areas, such as food exports, manufacturing or services
- offers greater legal certainty: transparent and clearer rules to benefit investors
- assures improved accountability of public agencies and officials
- guarantees a bigger say for civil society
- introduces reciprocal commitments towards investors from both sides
- ensures respect to environmental and labour standards, which shall not be weakened for the sake of attracting investment
- promotes corporate social responsibility and responsible business practices
- reinforces bilateral cooperation on investment-related aspects of climate change and gender equality
These objectives are fully in line with the objectives of the Cotonou Agreement and its successor agreement, as well as the “Investment Facilitation for Development Agreement” currently being negotiated in the World Trade Organisation.
Background and next steps
The negotiations between the EU and Angola on this agreement were concluded on 18 November 2022.
On 16 June 2023, the Commission sent proposals on the signature and conclusion of the agreement to the Council.
After the adoption of the Council Decision, the EU and Angola still need to sign the agreement and notify each other on the completion of their respective internal procedures, including, for the EU side, the consent of the European Parliament.
Source : Consilium.europa.eu