EU-Angola: Council gives final greenlight to the EU’s first sustainable investment facilitation agreement

Europe Angola

BRUSSELS, 04 March 2024 / PRN Africa / -- On 4 March 2024, the Council adopted a decision on the conclusion 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 (€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 through 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 Samoa Agreement, as well as the “Investment Facilitation for Development Agreement” negotiated in the World Trade Organisation.

Next steps

The agreement will enter into force on the first day of the second month following the date on which the Parties have notified each other of the completion of their respective internal procedures.

Background

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.

On 9 October 2023, the Council adopted a decision on the signature of the agreement.

The EU and Angola signed the agreement on 17 November 2023.

The European Parliament gave its consent to the conclusion of the agreement on 7 February 2024.

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SOURCE European Council

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