Background
The economic crisis caused by the COVID-19 pandemic has negatively impacted investment flows worldwide. Global foreign direct investment (FDI) fell by 42% in 2020. Although the decline was concentrated in developed countries, sustainable development goal (SDG)-relevant greenfield investment in developing and transition economies is now almost 20% lower than before 2015, international project finance - which is crucial for productive capacity and infrastructure development and therefore for the SDGs – declined by more than 30%. In Africa, SDG-relevant investment fell by 39%.
The pandemic also had a severe impact on the operations of institutions attracting FDI. Travel restrictions and lockdowns accelerated the pace of digitalization in investment promotion agencies (IPAs), helped fast-track the adoption of online investment procedures and reinforced investment facilitation services. Importantly, it also altered for many their priorities with more attention to SDG sectors. Pandemic-induced changes to IPA operations came on top of other challenges like the New Industrial Revolution, rising protectionism, the sustainability imperative and new opportunities that can galvanize African IPAs including growing national markets and the African Continental Free Trade Area (AfCFTA).
This seminar for Southern African Development Community (SADC) member countries which is being organized in partnership with the Mauritius Economic Development Board (EDB) will cover:
- FDI trends and prospects with special attention for investment in SDG sectors, including projects in the food sector, healthcare, ICT, renewable energy, and the blue economy.
- IPA experiences in adapting to the new normal and expanding facilitation services to SDG investment projects.
- The way forward for bilateral investment agreements in view of the AfCFTA Investment Protocol negotiations.
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