On 9 October 2023, the EU Council adopted and signed the sustainable investment facilitation agreement (SIFA) between the European Union and Angola. This achievement comes after years of arduous negotiations and lays the groundwork for a definitive agreement between the EU and Angola. Notably, this would be the first of its kind regarding sustainable investment facilitation that the EU has ever entered into. However, it's important to note that the finalization of the agreement is contingent upon approvals from both the Angolan and European Parliaments, making their votes a crucial but final step before its implementation.
Though focused on economic cooperation between the two regions, a heavy emphasis has been placed on developing sustainable practices, ensuring labor rights, and improving the investor climate for both local and international investors. Additionally, Angola hopes that through this agreement, that it will be able to diversify its economy from raw materials and energy resources.
Key Elements and Benefits of SIFA
SIFA comprises several critical components and benefits designed to boost economic cooperation and sustainability between the EU and Angola:
- Encompasses All Economic Sectors: The agreement extends its coverage to all economic sectors, actively encouraging diversification into new areas, such as food exports, manufacturing, and services.
- Enhanced Legal Certainty: SIFA offers greater transparency and clarity in rules and regulations, providing a more secure environment for investors.
- Accountability of Public Agencies: The agreement ensures improved accountability of public agencies and officials, promoting responsible governance.
- Civil Society Involvement: It guarantees a more significant role for civil society, allowing their voices to be heard and concerns addressed.
- Reciprocal Commitments: SIFA introduces reciprocal commitments for investors from both sides, fostering mutual trust and collaboration.
- Environmental and Labor Standards: A commitment to uphold environmental and labor standards without compromise, ensuring that these crucial standards are not weakened in the pursuit of attracting investments.
- Corporate Social Responsibility: The agreement promotes corporate social responsibility and responsible business practices, underlining the importance of ethical business conduct.
- Climate Change and Gender Equality: SIFA reinforces bilateral cooperation on investment-related aspects of climate change and gender equality, addressing these pressing global challenges.
