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- First of its kind: The EU-Angola Sustainable Investment Facilitation Agreement (SIFA) is the EU’s inaugural investment facilitation agreement, aiming to drive sustainable development through increased foreign investments.
- Improved business climate: SIFA enhances transparency, efficiency, and predictability in Angola, fostering a better environment for both foreign and local investors, particularly small and medium-sized enterprises (SMEs).
- Sustainability focus: The agreement aligns investment facilitation with environmental and climate commitments, promoting a diversified Angolan economy beyond fossil fuels.
The EU and Angola have officially launched the Sustainable Investment Facilitation Agreement (SIFA), marking a significant step in fostering sustainable economic growth. This is the first-ever investment facilitation agreement by the EU, aimed at boosting foreign investments in Angola to meet sustainable development goals.
Enhancing Investment Climate
The SIFA is designed to create a more transparent, efficient, and predictable business environment in Angola. It includes measures such as increasing transparency of investment regulations, promoting e-government for authorizations, and enhancing stakeholder involvement. These steps are expected to benefit both foreign and local investors, particularly small and medium-sized enterprises (SMEs).
Commitment to Sustainability
A core aspect of the agreement is its alignment with environmental and climate commitments. By promoting investments that adhere to labor rights and sustainability standards, the SIFA ensures that economic growth does not come at the expense of environmental and social responsibilities.
Unlocking Angola’s Economic Potential
The SIFA also aims to diversify Angola’s economy beyond its dependence on fossil fuels by unlocking investment in sectors like green energy, agri-food value chains, digital innovation, fisheries, logistics, and critical raw materials. This diversification is vital for Angola’s long-term economic stability and growth.
Broader EU-Africa Engagement
The SIFA is part of the EU’s broader strategy to deepen ties with Africa. It complements the Africa-EU Global Gateway Investment Package, under which the EU will invest €150 billion in African countries. The EU Commission is also exploring the possibility of negotiating similar agreements with other African nations.
Moving forward, the EU and Angola will collaborate on the implementation of the SIFA, with the EU providing targeted technical support to promote trade and investment. A Committee on Investment Facilitation comprising EU and Angolan representatives will oversee the agreement’s progress and explore ways to enhance investment relations further.
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Angola is a significant partner for the EU, being its fifth-largest investment destination in Africa. In 2022, the EU’s foreign direct investment in Angola amounted to €21.7 billion, making it a pivotal player in Angola’s economic landscape. The SIFA represents a continuation of the EU’s commitment, as outlined in the 2021 Trade Policy Review, to propose sustainable investment initiatives to African partners sharing similar ambitions.
The SIFA’s signing in November 2023, after negotiations concluded in November 2022, marks a milestone in EU-Angola relations and sets a precedent for future EU-African partnerships in sustainable investment.