Investment

• promoting, facilitating and protecting investments that foster sustainable development of State Parties

• establishing a transparent and sound continental legal framework on investment, taking into account the interests of State Parties, investors and local communities;

• providing security and predictability in the prevention and management of investment disputes;

• creating a level playing field for African investors; or

• Promoting and enhancing common positions and cooperation on matters related to investment promotion, facilitation and protection.

The protocol creates a continental regime that governs investments happening in the continent under the context of AfCFTA. The provisions under the protocol are the means to the achievement of the aim of promoting, facilitating and protection of intra-Africa investment. 

The provisions of the protocol are applicable after the investor is admitted in to the host state based on the national investment law of the member state. The protocol provides for definitions of investment, investor, host state, home state, sustainable development and the type of investment that is acceptable that is deemed to be an investment under AfCFTA. As the protocol intends to create an investment regime that considers sustainable development it takes into account climate change, labor standard, and gender. The type of investment allowed under the protocol is “enterprise based” investment it’s establishing an entity in the host state. Due to its benefits of creating employment opportunity, generating income (tax) for government, transfer of knowledge and technology the “enterprise based” approach is used under the protocol. 

The protocol includes basic principles that are applicable by the state this includes non-discrimination. The non-discrimination principle which is the basic principle under international trade law is embodied in most favored nation treatment and national treatment; it obliges states to extend a favorable treatment given to investors from other countries to member state investors. The same rule applies when a favorable treatment is given to the national investor. The host state has the right to deny the rights of the investor incorporated under the protocol for the sake of fulfilling its legitimate objective. 

A continental investment office that has a duty of controlling the implementation the protocol is also established by the protocol.