Brussels, 1 September 2024
Today, the EU-Angola Sustainable Investment Facilitation Agreement (SIFA) has entered into force. This is the first-ever EU agreement on investment facilitation. It aims to stimulate foreign investments needed to achieve sustainable development goals. The SIFA will create a more transparent, efficient, and predictable business environment for investors in Angola and to promote sustainable investment by EU businesses in Angola.
The SIFA focuses on improving the business environment through investment facilitation measures, such as increasing the transparency of investment regulations, promoting the use of e-government for authorisations, and enhancing stakeholder involvement. Investment facilitation benefits both foreign and local investors, especially small and medium-sized enterprises.
The agreement also upholds environmental and climate commitments, as well as respect for labour rights, ensuring that the facilitation of investments is aligned with sustainability objectives.
Improvements in the business climate will help unlock investment in sectors with untapped potential, such as green energy, agri-food value chains, digital innovation, fisheries, logistics, and critical raw materials. The agreement will thus contribute to Angola’s efforts to diversify its economy beyond fossil fuels.
The SIFA is part of the EU’s ambition to deepen its engagement with Africa. It complements the objectives of the Africa-EU Global Gateway Investment Package, through which the EU will support African countries with €150 billion worth of investments. Building on this successful outcome, the Commission is exploring the possibility of negotiating SIFAs with other interested partner countries in Africa.
Next steps
The two sides will now work together to implement the agreement. The EU will support Angola through targeted technical support aimed at promoting trade and investment.
A Committee on Investment Facilitation composed of EU and Angolan representatives will also supervise the implementation of the agreement and seek ways of further enhancing investment relations between the EU and Angola.
Background
Angola is the EU’s 5th investment destination on the African continent. It covers 8% of EU foreign direct investments in Africa, amounting to €21.7 billion in 2022. Angola’s investments in the EU amounted to €2.9 billion in 2022.The EU is Angola’s main trade and investment partner.
On 18 November 2022, the EU and Angola concluded negotiations on the SIFA. The agreement was signed on 17 November 2023 in Luanda, Angola.
The SIFA reflects the Commission’s commitment outlined in its 2021 Trade Policy Review to “propose a new sustainable investment initiative to partners or regions in Africa and the Southern Neighbourhood” who share the same ambition.
More Information
Quote(s)
I am delighted that this innovative, first-of-its-kind agreement with Angola has now entered into force. The Sustainable Investment Facilitation Agreement will create a modern and more sustainable investment environment in Angola, promoting economic growth for both partners. It will help diversify the Angolan economy and support responsible investment practices, strengthening the partnership between the European Union and Angola.
Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade
Source – EU Commission