Policy Brief

Promoting Sustainable Industrialisation through Inclusive Investment Policies

The African Continental Free Trade Area (AfCFTA) offers Africa a transformative opportunity to achieve sustainable industrialisation through inclusive investment policies. By establishing a single continental market, the AfCFTA aims to enhance intra-African trade, strengthen regional value chains, and foster economic integration. Central to this effort is the AfCFTA Protocol on Investment, which provides a framework for promoting sustainable and inclusive investment practices. This policy brief explores how the AfCFTA can leverage its investment protocol and international best practices to drive industrialisation that is economically viable, socially inclusive, and environmentally sustainable. It highlights key elements of the protocol, such as promoting sustainable investments, ensuring inclusivity for marginalised groups, harmonising regulations, and establishing dispute resolution mechanisms. Drawing on international examples, such as Rwanda’s alignment with the Sustainable Development Goals and the Association of Southeast Asian Nations’ regional value chains, the brief underscores the importance of aligning investment strategies with global best practices. However, challenges such as infrastructure deficits, regulatory fragmentation, limited institutional capacity, and varying political commitment must be addressed to fully realise the AfCFTA’s potential. The brief concludes with actionable recommendations for policymakers, including developing national investment strategies aligned with the AfCFTA, promoting gender-responsive and youth-inclusive policies, strengthening regional value chains, leveraging digital technologies, and enhancing infrastructure development. By addressing these challenges and implementing inclusive investment policies, the AfCFTA can play a pivotal role in transforming Africa’s economic landscape, reducing inequality, and positioning the continent as a competitive player in the global economy.

20 Oct 2025

Task Force

Keywords

AfCFTAeconomic integrationregional value chainssustainable industrialisation

Author/s

Adomako Appiah Kusi
West Africa Regional Director,
CUTS International Accra
(Ghana)
Offei Eunice
PhD Candidate,
New School, New York, NY
(United States)