The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has underscored the need for a harmonised regional investment framework and regulatory standards to boost foreign direct investment (FDI) flows into West Africa and the wider African continent.
Delivering her remarks at the opening ceremony of the Fifth Meeting of ECOWAS Ministers of Trade and Industry in Accra, she expressed concern over the sub-region’s inability to attract significant investment despite its vast market potential and strategic economic advantages.
According to the Minister, predictable regulatory standards, policy consistency, and credible dispute resolution mechanisms are among the key factors influencing investors’ decisions and confidence in emerging markets.
“A harmonised regional investment framework changes that calculus. When an investor can enter one market and effectively access twelve, when regulatory standards are predictable, and when dispute resolution is credible, the case for investing in ECOWAS becomes compelling. The ECOWAS Common Investment Market is a vehicle for that transformation. It is our duty to drive it,” she stated.
Her call comes amid mixed investment trends across the continent. Citing the United Nations Conference on Trade and Development (UNCTAD), the Minister noted that foreign direct investment inflows into Africa stood at approximately US$53 billion in 2023, reflecting continued challenges in attracting global capital despite the continent’s growing economic prospects.
However, UNCTAD’s World Investment Report 2024 showed a significant rebound in investment flows to Africa, with FDI increasing by 84% to US$97 billion in 2024. The surge was largely driven by major investment deals in Egypt, particularly the Ras El-Hekma development project. Excluding the Egyptian deal, FDI inflows to Africa still recorded a notable 23% increase, reaching approximately US$50 billion.
The report further indicated that investment facilitation measures accounted for 36% of policy actions favourable to investors, while market liberalisation initiatives contributed nearly one-fifth of reforms aimed at attracting capital.
Despite the continent’s overall positive performance, West Africa remained the only African sub-region to record a decline in foreign direct investment. Investment inflows to the region fell to approximately US$15 billion, down from US$16 billion the previous year, highlighting the urgent need for coordinated policy interventions to improve the investment climate.
Mrs Ofosu-Adjare therefore urged her fellow Ministers of Trade and Industry to accelerate efforts towards a harmonised regional investment framework capable of reducing regulatory fragmentation, improving investor confidence, and unlocking the full economic potential of the ECOWAS market.
The Fifth Meeting of ECOWAS Ministers of Trade and Industry was convened to provide high-level political guidance, review recommendations from expert and senior officials’ meetings, and take strategic decisions to advance the Community’s agenda on trade, industrialisation, investment, competition, and consumer protection.
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