This Regional Investment Policy Framework is a multisectoral document aimed at increasing investment inflows into the ECOWAS region by addressing the location-specific factors that influence investors’ decisions, including the size and growth of domestic markets, openness to international trade, the quality of the investment climate, and the region’s investment image. It provides a coherent regional approach to investment promotion and facilitation, while taking into account the specific circumstances and priorities of ECOWAS Member States. In addition, it provides practical recommendations for implementation, coordination, and institutional follow-up to strengthen the region’s capacity to attract, retain, and expand investment. Practically, the Framework aims to provide a common reference for the formulation, implementation, and evaluation of national investment policies across the ECOWAS region. It seeks to promote greater coherence and harmonization of investment promotion policies and regulatory frameworks among Member States, thereby creating a more predictable, transparent, and attractive environment for both domestic and foreign investors. To achieve this objective, the Framework (i) identifies the essential conditions required to attract and retain investment, including political stability, good governance, macroeconomic stability and reform, trade liberalization, regional market integration, foreign exchange market liberalization, investment deregulation, consistency and predictability in policy formulation and implementation, and the simplification and improvement of procedures for establishing and operating enterprises; (ii) sets out the principal actions required to strengthen the investment environment over the medium term. These include tax reform, legal and judicial reform, institutional reform, the development of capital markets, investment in human capital, credible and transparent privatization programmes, the provision and upgrading of infrastructure, and strengthened investment promotion and facilitation mechanisms. The Framework identifies a set of policy areas and economic sectors in which reforms and investment-promoting measures should be implemented to create an attractive, transparent, and predictable investment environment across the ECOWAS region. The main areas and corresponding investment-promotion strategies are as follows (i) Trade and regional market integration, through the liberalization of trade, removal of trade barriers, establishment of a common market, implementation of the ECOWAS trade reform agenda, and improvement of market access for investors; (ii) Tax policy and fiscal framework, through the development of investment-friendly tax policies, review and harmonization of tax incentives, enhancement of the transparency and predictability of tax laws, development of tax treaties, and conduct of cost-benefit analyses of investment incentives; (iii) Financial services and capital markets, through the development of capital markets, facilitation of investment flows, improvement of access to finance, and reduction of unnecessary restrictions on financial services; (iv) Infrastructure, through investment in new and upgraded infrastructure and the promotion of public-private participation in infrastructure development and service delivery; (v) Human resources and employment, through the development of human capital through education and vocational training, adoption of effective workforce development policies, and strengthening of dialogue between policymakers and the private sector; (vi) Enterprise development and SMEs, through support for enterprise creation, strengthening of financial institutions, promotion of SME development, encouragement of linkages between foreign investors and SMEs, and integration of SMEs into regional value chains; (vii) Industrial development, through industrial policies that strengthen regional productive capacity, facilitate technology transfer, and strengthen linkages between foreign and domestic investors; (viii) Public administration and regulatory governance, through streamlining of administrative procedures, removal of unnecessary regulatory barriers, strengthening of institutions, improvement of governance, and enhancement of consultation among governments, businesses, and civil society; (ix) Competition policy, through the establishment and enforcement of regional competition rules, strengthening of enforcement agencies, and ensuring that privatization processes are compatible with competition principles; (x) Corporate governance and business integrity, through improvement of corporate governance standards, enhancement of transparency and accountability, strengthening of regulatory oversight, and promotion of corporate social responsibility; (xi) Investment promotion and facilitation, through the establishment of a Regional Investment Promotion Agency (RIPA), dissemination of investment information, removal of administrative barriers, provision of investor services, facilitation of investments throughout their lifecycle, and regular consultation with investors. Attached to the end of this document is Supplementary Act A/SA.3/12/08, adopting Community Rules on Investment and the modalities for their implementation within ECOWAS.
2007-01-01