The signing took place within the scope of the EU-Angola Business Forum, in Luanda, and aims to "respond to Angola's ambition to diversify its economy beyond the oil and gas sectors, which have historically attracted the majority of foreign investment", he announced the European Commission in a statement.
Specifically, according to Brussels, "the agreement, with its commitments to improving the business climate and sustainability across the economy, is expected to attract new EU investment to sectors in which Angola's potential is currently unexplored."
At stake are the sectors of 'green' energy, agri-food value chains, digital innovation, fisheries, logistics and essential raw materials, after Angola's economic evolution has been linked to the global demand for oil, causing volatile growth and poverty.
"The main objective is to increase sustainable investment by EU companies in Angola, while Angolan companies will benefit from facilitation measures and better links between foreign investors and national suppliers", explains the community executive.
Quoted in the note, the executive vice-president and commissioner responsible for Trade, Valdis Dombrovskis, speaks of a "step forward of crucial importance for the EU's commitment to trade and investment in Africa".
"In addition to reinforcing the EU's commitment to a stronger and more predictable investment climate, this agreement can boost sustainable investment in Angola, a key economy in Southern Africa, by promoting sustainable, transparent and predictable investments in the country, with greater potential benefits extended to the entire region".
This agreement between the EU and Angola, which will still have to be approved by the European Parliament, focuses on simplifying investment authorization procedures and promoting transparency and predictability.
At a time when the community bloc has ambitious 'green' goals, such as being the first climate-neutral region in the world by 2050, this EU-Angola Sustainable Investment Facilitation Agreement also aims to reinforce bilateral cooperation in combating climate change and respect for environmental and labor standards.
Angola is the EU's sixth African investment destination, comprising 7 percent of the EU's foreign direct investments on the continent, totaling 14.1 billion euros in 2021, according to data from the European Commission.
That year, Angola's investment stock in the EU amounted to 3.5 billion euros in 2021.
Negotiations for the agreement signed this Friday were concluded in November 2022 and were then endorsed by the EU Council on October 9.
