Extend role beyond attracting FDIs — WAIPA CEO to investment agencies
The Chief Executive Officer (CEO) of the World Association of Investment Agencies (WAIPA), Ismail Ersahin, has called on Investment Promotion Agencies (IPAs) not to only attract foreign investment but also actively support their governments in creating conducive investment environment in their respective countries.
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Again, he said to attract and retain investors, countries must offer stability, transparency, and legal frameworks that protect investment.
Mr Ersahin who joined the virtual opening of a two-day African IPAs capacity building conference in Africa explained that by collaborating with governments to create conducive investment environment, IPAs can contribute to sustainable economic development, infrastructure improvement, and workforce development and ultimately position their countries as attractive destinations for long-term investments.
“We have to ensure that IPAs do not just attract investment, but support their governments to create conducive investment climates in their countries,” he said.
IPAs capacity building conference
Organised by the Ghana Investment Promotion Center (GIPC) in collaboration with the African Continental Free Trade Area (AfCFTA) secretariat, the capacity building conference was on the theme: “Equipping African IPAs to promote and facilitate investments for accelerating implementation of the AfCFTA.”
It brought together Africa Investment Promotion Agencies to address the challenges faced by IPAs in undertaking their core mandates, build their capacities in investment promotion, facilitation and policy advocacy strategies, as well as equip them for the attraction of sustainable investments.
AfCFTA and investment
The Minister of Trade and Industry, K. T. Hammond, said “evidence abounds to signal the pivotal role of Investment in Ghana’s economic transformation.
In Africa, Foreign Direct Investment (FDI) inflows have increased significantly in recent years, but still leaves a lot to be desired.”
According to the United Nations Conference on Trade and Development (UNCTAD), FDI flows to Africa declined to $45 billion in 2022 from the record $80 billion set in 2021. That accounted for mere 3.5 per cent of global FDI inflows.
While the global FDI fell in general by 12 per cent, Africa was the hardest hit with a 44 per cent decline in FDI compared to 2021.
The Minister said “it is therefore imperative that we keep conversations that try to optimize FDI flows to keep the continent alive, and leverage all available tools at our disposal, including initiatives like the AfCFTA and its Investment Protocol.”
He further said the AfCFTA provides the opportunity for African countries to diversify their economies, scale production capacity and widen the range of products mad3e in Africa, in particular boosting the production.
Mr Hammond added that it was an innovative response to address some of the bottlenecks and bureaucratic impediments that businesses have highlighted as being unfavorable to the predictable and transparent business environment.
AfCFTA Protocol on Investment
The Secretary General of the AfCFTA Secretariat, Wamkele Mene, said Africa offered a wealth of untapped and underuti¬lised investment opportunities adding that “with a projected population of 2.5 billion by 2050 driven by a youthful workforce, abundant natu¬ral resources, burgeoning technol¬ogy and innovation opportunities, Africa is now one of the fast¬est-growing regions in the world.”
Mr Mene said that navigating Africa’s investment landscape presents challenges due to disparities and diverse nature of the continent, from infrastructure deficit and regulatory complexities to access to skilled labour.
He explained that due to the perceived risks of inadequate legal protections often deterring potential investors, the landmark AfCFTA Protocol on Investment (the Protocol) was adopted in February 2023 by Heads of State and Government of the African Union to harmonise investment regulations across the continent, aimed at providing a more attractive and predictable investment environment in Africa.
Collaboration
The CEO of GIPC, Yofi Grant, said the conference was a crucial platform for IPAs to learn more about AfCFTA protocols on investment and explore strategies to support its implementation.
“By working together, we can foster a more investment-friendly environment across Africa, at-tracting the investments necessary to general employment oppor¬tunities and propel economic growth,” he added.
AfCFTA Protocol on Investment
The Secretary General of the AfCFTA Secretariat, Wamkele Mene, said Africa offered a wealth of untapped and underuti¬lised investment opportunities adding that “with a projected population of 2.5 billion by 2050 driven by a youthful workforce, abundant natu¬ral resources, burgeoning technol¬ogy and innovation opportunities, Africa is now one of the fast¬est-growing regions in the world.”
Mr Mene said that navigating Africa’s investment landscape presents challenges due to disparities and diverse nature of the continent, from infrastructure deficit and regulatory complexities to access to skilled labour.
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He explained that due to the perceived risks of inadequate legal protections often deterring potential investors, the landmark AfCFTA Protocol on Investment (the Protocol) was adopted in February 2023 by Heads of State and Government of the African Union to harmonise investment regulations across the continent, aimed at providing a more attractive and predictable investment environment in Africa.
Collaboration
The CEO of GIPC, Yofi Grant, said the conference was a crucial platform for IPAs to learn more about AfCFTA protocols on investment and explore strategies to support its implementation.
“By working together, we can foster a more investment-friendly environment across Africa, at-tracting the investments necessary to general employment oppor¬tunities and propel economic growth,” he added.
