From protocol to practice: the implementation of investment facilitation commitments underthe AfCFTA

Purpose This paper aims to examine the implementation of investment facilitation commitments under the African Continental Free Trade Area (AfCFTA) Investment Protocol. Its purpose is threefold: first, to analyse the core investment facilitation obligations established under the AfCFTA and compare them with global standards; second, to identify key implementation challenges facing African states in fulfilling these commitments; and third, to evaluate necessary technical assistance and capacity-building mechanisms to support effective implementation. By exploring these dimensions, the paper aims to provide practical insights for policymakers, practitioners and researchers engaged in advancing Africa’s economic transformation through enhanced investment flows and regional integration. Design/methodology/approach This paper uses doctrinal legal analysis to examine the implementation challenges and opportunities of investment facilitation commitments under the AfCFTA Investment Protocol. The methodology involves systematic analysis of primary legal texts, including the AfCFTA Investment Protocol and related regional frameworks, alongside comparative examination of the WTO Investment Facilitation for Development Agreement. The paper synthesises evidence from regional and national case studies to identify emerging best practices and implementation challenges. The research framework considers three dimensions: regulatory frameworks, institutional mechanisms and technical capacity needs, while evaluating potential solutions through analysis of technical assistance frameworks and implementation experiences across African states. Findings The paper reveals that effective implementation of AfCFTA investment facilitation commitments faces significant challenges including institutional capacity constraints, infrastructure and technology gaps and political economy factors. Regional approaches demonstrate the value of coordinated implementation but highlight persistent gaps between formal commitments and practical implementation. Successful national implementation strategies share common features: strong political commitment, effective institutional coordination and strategic use of digital technologies. The research identifies emerging best practices including phased implementation approaches, stakeholder engagement mechanisms and robust monitoring frameworks. Technical assistance needs to be better coordinated and demand-driven to address implementation challenges equitably across countries with varying capacities. Research limitations/implications This study primarily relies on doctrinal analysis and publicly available information about implementation efforts, which may not fully capture on-the-ground realities or informal implementation mechanisms. The research is limited by the recency of the AfCFTA Investment Protocol’s adoption, with implementation still in early stages, offering limited empirical evidence on outcomes. Future research would benefit from quantitative assessment of implementation impacts, comparative analysis of institutional models and deeper investigation of digital technology applications in investment facilitation. The findings nonetheless provide valuable guidance for policymakers designing implementation strategies and technical assistance programmes that address the identified challenges. Practical implications The findings offer several practical implications for AfCFTA implementation. Policymakers should prioritise establishing dedicated institutional mechanisms for coordinating investment facilitation at continental, regional and national levels. A continental implementation roadmap with clear milestones and phased approaches would accommodate varying country capacities. Digital solutions should be leveraged to enhance transparency and streamline procedures, while addressing infrastructure gaps. Technical assistance providers should adopt more coordinated, demand-driven approaches based on comprehensive needs assessments. Private sector engagement mechanisms should be formalised to ensure facilitation measures respond to investor needs. These strategies can transform investment facilitation from technical reform to a transformative agenda for Africa’s economic integration. Social implications Effective implementation of investment facilitation under the AfCFTA has significant social implications across Africa. By enhancing investment flows and economic integration, successful implementation can create employment opportunities, particularly for youth, women and vulnerable groups as recognised in Article 29 of the Protocol. Streamlined administrative procedures can reduce corruption opportunities, promoting more equitable access to investment opportunities for domestic entrepreneurs. However, implementation must balance efficiency with safeguarding public interests. The paper highlights the importance of inclusive stakeholder engagement to ensure investment facilitation contributes to sustainable development outcomes rather than merely benefiting large investors or exacerbating existing economic inequalities. Originality/value This paper provides quite a comprehensive analysis of implementation challenges and strategies for investment facilitation commitments under the recently adopted AfCFTA Investment Protocol. While existing literature examines investment facilitation conceptually, this research contributes original insights on the unique African continental context and implementation dynamics. The paper’s value lies in its synthesis of emerging best practices from regional and national experiences, detailed examination of technical assistance frameworks and practical policy recommendations for various governance levels. This comprehensive approach offers significant value to policymakers, development practitioners and researchers seeking to advance Africa’s economic integration through enhanced investment facilitation.

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Publication Details

Journal
Journal of International Trade Law and Policy
Published
2025-10-29
DOI
https://doi.org/10.1108/jitlp-03-2025-0015
Primary Topic
International Arbitration and Investment Law
Type
article
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article

From protocol to practice: the implementation of investment facilitation commitments underthe AfCFTA

Majid Lateef
Journal of International Trade Law and Policy
International Arbitration and Investment Law
article

From protocol to practice: the implementation of investment facilitation commitments underthe AfCFTA

Majid Lateef
article en

Abstract

Purpose This paper aims to examine the implementation of investment facilitation commitments under the African Continental Free Trade Area (AfCFTA) Investment Protocol. Its purpose is threefold: first, to analyse the core investment facilitation obligations established under the AfCFTA and compare them with global standards; second, to identify key implementation challenges facing African states in fulfilling these commitments; and third, to evaluate necessary technical assistance and capacity-building mechanisms to support effective implementation. By exploring these dimensions, the paper aims to provide practical insights for policymakers, practitioners and researchers engaged in advancing Africa’s economic transformation through enhanced investment flows and regional integration. Design/methodology/approach This paper uses doctrinal legal analysis to examine the implementation challenges and opportunities of investment facilitation commitments under the AfCFTA Investment Protocol. The methodology involves systematic analysis of primary legal texts, including the AfCFTA Investment Protocol and related regional frameworks, alongside comparative examination of the WTO Investment Facilitation for Development Agreement. The paper synthesises evidence from regional and national case studies to identify emerging best practices and implementation challenges. The research framework considers three dimensions: regulatory frameworks, institutional mechanisms and technical capacity needs, while evaluating potential solutions through analysis of technical assistance frameworks and implementation experiences across African states. Findings The paper reveals that effective implementation of AfCFTA investment facilitation commitments faces significant challenges including institutional capacity constraints, infrastructure and technology gaps and political economy factors. Regional approaches demonstrate the value of coordinated implementation but highlight persistent gaps between formal commitments and practical implementation. Successful national implementation strategies share common features: strong political commitment, effective institutional coordination and strategic use of digital technologies. The research identifies emerging best practices including phased implementation approaches, stakeholder engagement mechanisms and robust monitoring frameworks. Technical assistance needs to be better coordinated and demand-driven to address implementation challenges equitably across countries with varying capacities. Research limitations/implications This study primarily relies on doctrinal analysis and publicly available information about implementation efforts, which may not fully capture on-the-ground realities or informal implementation mechanisms. The research is limited by the recency of the AfCFTA Investment Protocol’s adoption, with implementation still in early stages, offering limited empirical evidence on outcomes. Future research would benefit from quantitative assessment of implementation impacts, comparative analysis of institutional models and deeper investigation of digital technology applications in investment facilitation. The findings nonetheless provide valuable guidance for policymakers designing implementation strategies and technical assistance programmes that address the identified challenges. Practical implications The findings offer several practical implications for AfCFTA implementation. Policymakers should prioritise establishing dedicated institutional mechanisms for coordinating investment facilitation at continental, regional and national levels. A continental implementation roadmap with clear milestones and phased approaches would accommodate varying country capacities. Digital solutions should be leveraged to enhance transparency and streamline procedures, while addressing infrastructure gaps. Technical assistance providers should adopt more coordinated, demand-driven approaches based on comprehensive needs assessments. Private sector engagement mechanisms should be formalised to ensure facilitation measures respond to investor needs. These strategies can transform investment facilitation from technical reform to a transformative agenda for Africa’s economic integration. Social implications Effective implementation of investment facilitation under the AfCFTA has significant social implications across Africa. By enhancing investment flows and economic integration, successful implementation can create employment opportunities, particularly for youth, women and vulnerable groups as recognised in Article 29 of the Protocol. Streamlined administrative procedures can reduce corruption opportunities, promoting more equitable access to investment opportunities for domestic entrepreneurs. However, implementation must balance efficiency with safeguarding public interests. The paper highlights the importance of inclusive stakeholder engagement to ensure investment facilitation contributes to sustainable development outcomes rather than merely benefiting large investors or exacerbating existing economic inequalities. Originality/value This paper provides quite a comprehensive analysis of implementation challenges and strategies for investment facilitation commitments under the recently adopted AfCFTA Investment Protocol. While existing literature examines investment facilitation conceptually, this research contributes original insights on the unique African continental context and implementation dynamics. The paper’s value lies in its synthesis of emerging best practices from regional and national experiences, detailed examination of technical assistance frameworks and practical policy recommendations for various governance levels. This comprehensive approach offers significant value to policymakers, development practitioners and researchers seeking to advance Africa’s economic integration through enhanced investment facilitation.

Journal of International Trade Law and PolicyVol. 25(1)
University of Hull (GB)
Openalex Percentile: Top 55%
International Arbitration and Investment Law
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