Brussels, 6.5.2025

COM(2025) 192 final

Recommendation for a

COUNCIL DECISION

authorising the opening of negotiations of a Sustainable Investment Facilitation Agreement between the European Union and the Republic of Côte d'Ivoire


EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The Competitiveness Compass of 29 January 2025 mentioned the need for the EU to “[seek] new ways of deepening partnerships and [create] benefits for our businesses”, including through Sustainable Investment Facilitation Agreements (hereinafter, “SIFAs”). 1

In its Communication on a Trade Policy Review of 18 February 2021 2 the Commission announced its intention to “step up its engagement with African partners to unlock their economic potential, foster economic diversification and inclusive growth” and to “propose a new sustainable investment initiative to partners or regions in Africa and the Southern Neighbourhood interested in doing so […] in the form of stand-alone investment agreements or as part of the modernisation of existing trade agreements.”

The European Commission concluded negotiations of a SIFA with Angola on 18 November 2022. 3 The SIFA entered into force on 1 September 2024, 4  and is the first EU agreement of its kind. The Commission is also exploring the possibility of negotiating SIFAs with other interested partner countries, including with the Republic of Côte d'Ivoire (hereinafter, “Côte d'Ivoire”).

In 2023, the stock of EU foreign direct investment in Côte d'Ivoire amounted to EUR 4.3 billion, up from EUR 4.1 billion in 2022. The EU has concluded an interim Economic Partnership Agreement (hereinafter, “EPA”) with Côte d'Ivoire, which however does not contain provisions on investment facilitation.

In light of the opportunity for the EU to deepen its investment relationship with Côte d'Ivoire, the possibility to engage in the negotiations of a SIFA was discussed in the context of the 6th Côte d'Ivoire-EU EPA Committee, which took place in Abidjan on 12-13 October 2023. 5  

As a follow up, technical exploratory discussions were held with Côte d'Ivoire on the scope, content, and parameters of the SIFA. Following these discussions, on 6 March 2025, the two sides agreed to start their respective internal procedures to open formal negotiations for a SIFA.

This Agreement would seek to improve the attraction, expansion and retention of foreign direct investment between the EU and Côte d'Ivoire, notably through investment facilitation measures, such as increasing the transparency and predictability of investment-related measures, streamlining investment authorisation procedures, and improving public-private dialogue through investor focal points and stakeholder involvement. The ultimate objective is to foster a more transparent, efficient and predictable investment climate, and therefore encourage higher levels of foreign direct investment to Côte d'Ivoire. In doing so, this Agreement will promote sustainable development, economic growth, and job creation, as well as strengthen the bilateral investment relationship between the EU and Côte d'Ivoire. This Agreement will also provide a solid platform for contributing to the economic diversification of Côte d'Ivoire, as well as its integration into the global economy.

•Consistency with existing policy provisions in the policy area

The objectives of this Agreement are consistent with the Treaty on European Union (TEU), which provides that the EU should “encourage the integration of all countries into the world economy, including through the progressive abolition of restrictions on international trade.” 6  

Its objectives are also aligned with the Partnership Agreement between the European Union and its Member States, of the one part, and the Members of the Organisation of the African, Caribbean and Pacific States (ACP), of the other part, signed in Samoa on 15 November 2023, and in particular Articles 41 and 42 thereof. 7

This Agreement advances the objectives of the Competitiveness Compass of 29 January 2025, which mentioned the need for the EU to ‘[seek] new ways of deepening partnerships and [create] benefits for our businesses’, including through SIFAs. 8 It also follows-up on the above-mentioned Trade Policy Review Communication and the Trade and Sustainable Development review Communication of 2022. 9

The Agreement is part of the EU’s comprehensive strategy with Africa, 10 which “proposed that the EU develops more ambitious arrangements to facilitate, attract and support investment in Africa.” In addition, it is in line with the EU-African Union (AU) “Joint Vision for 2030”, 11 adopted at the 6th EU-AU Summit, which underlined the joint commitment to “promote accountable, transparent, inclusive and responsive governance, in conformity with the relevant international instruments, to boost efforts towards improving investment and the business climate as well as towards unlocking and increasing responsible and sustainable African and European investments.” Its objectives are also consistent with the EU’s Global Gateway strategy launched in November 2021 and its first deliverable, the Africa-Europe Investment Package, agreed at the 6th EU-AU Summit, which aims to leverage EUR 150 billion in investments in Africa by 2027 in eleven priority areas, including economic integration, investment, and private sector development. The Global Gateway Africa-Europe Investment Package is the EU’s guiding framework to foster investment attractiveness in Africa, ensure that the regulatory environment is conducive to private sector engagement, and that investments bring all the potential benefits towards sustainable growth. 

The envisaged SIFA is fully consistent with, and complementary to the future Investment Facilitation for Development Agreement which has been negotiated within the World Trade Organization. 12

Lastly, the negotiating directives in the Annex are consistent with Council Decision (EU) 2020/13 of 19 December 2019 amending the negotiating directives for the negotiation of EPAs with the ACP countries and regions. 13

•Consistency with other Union policies

The objectives are consistent with other EU policies, notably the EU’s development policy.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The legal basis for this act is the first subparagraph of Article 207(4), in conjunction with the second and third subparagraphs of Article 207(3) and Article 218(4) of the Treaty on the Functioning of the European Union (TFEU).

•Subsidiarity (for non-exclusive competence)

The subject matter of the envisaged negotiations relate to the common commercial policy. According to Article 5(3) of the TEU, the subsidiarity principle does not apply in areas of exclusive EU competence. The common commercial policy is listed among the areas of exclusive competence of the Union in Article 3 of the TFEU. This policy includes the negotiation of trade agreements pursuant to, inter alia, Article 207 TFEU.

•Proportionality

The recommendation of the Commission is in line with the principle of proportionality, as the conclusion of an international agreement is the main instrument for assuming reciprocal rights and obligations with a subject of international law, such as a foreign country.

•Choice of the instrument

Decision of the Council of the European Union.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

Not applicable.

•Stakeholder consultations

From June to November 2020, the Commission carried out a public consultation 14 seeking input from the European Parliament, Member States, stakeholders, and civil society on the review of the European Union’s trade policy, including on ways to strengthen the EU’s trade and investment relationships with the neighbouring countries and Africa.

The Commission regularly consults stakeholders inter alia in the Expert Group on Trade Agreements 15 and the Civil Society Dialogue. 16

•Collection and use of expertise

This proposal relies on external expertise gathered in the context of a project carried out by the World Bank and commissioned by the European Commission. The report notably identified that investors 17 put forward, as critical factors affecting their investment decisions in developing countries, the lack of transparency and predictability in dealing with public agencies, the sudden change in the laws and regulations, and the delays in obtaining government permits and approvals. Those are the areas that would be covered by the proposed SIFA.

•Impact assessment

Investment facilitation commitments in the SIFA focus on the application of good governance principles and good regulatory practices, including transparency, predictability, and administrative efficiency, in a partner country’s investment framework (investment laws, regulations, and procedures). The impact of these investment facilitation measures relates largely to the implementation of the Agreement by a partner country and the long-term improvement in its investment environment. The overall impact is also affected by individual investments that such an improved investment framework may attract. The SIFA codifies practices that are already well-established within the EU.

•Regulatory fitness and simplification

This proposal seeks to recommend the adoption by the Council of a decision authorising the opening of negotiations of a SIFA with Côte d'Ivoire. The proposal does not entail exchange of data, automation of processes, use of digital systems or the provision of public services. Consequently, the ‘digital by default’ principle does not apply, as it does not introduce specific digital requirements.

•Fundamental rights

The initiative fully respects the Charter of Fundamental Rights of the European Union.

4.BUDGETARY IMPLICATIONS

The initiative does not have budgetary implications.

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

The negotiations of the SIFA are expected to be concluded in 2026.

•Explanatory documents (for directives)

Not applicable.

•Detailed explanation of the specific provisions of the proposal

The provisions aim to recommend the adoption by the Council of a decision authorising the opening of negotiations and nominating the Union negotiator. The Council may address directives to the negotiator.

Recommendation for a

COUNCIL DECISION

authorising the opening of negotiations of a Sustainable Investment Facilitation Agreement between the European Union and the Republic of Côte d'Ivoire

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(4), in conjunction with the second and third subparagraphs of Article 207(3) and Article 218(4) thereof,

Having regard to the recommendation from the European Commission,

Whereas:

Negotiations should be opened with a view to concluding a Sustainable Investment Facilitation Agreement with the Republic of Côte d'Ivoire,

HAS ADOPTED THIS DECISION:

Article 1

The Commission is hereby authorised to negotiate, on behalf of the Union, a Sustainable Investment Facilitation Agreement with the Republic of Côte d'Ivoire.

Article 2

The negotiating directives are set out in the Annex to this Decision.

Article 3

The negotiations shall be conducted in consultation with [name of the special committee to be inserted by the Council].

Article 4

This Decision and its Annex will be made public immediately after their adoption.

Article 5

This Decision is addressed to the Commission.

Done at Brussels,

   For the Council

   The President

(1)    Communication from the Commission on a Competitiveness Compass for the EU, COM(2025) 30 final.
(2)    Communication from the Commission on a Trade Policy Review - An Open, Sustainable and Assertive Trade Policy, COM(2021) 66 final.
(3)     https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/southern-african-development-community-sadc/eu-angola-negotiations_en
(4)    See Council Decision (EU) 2024/829 of 4 March 2024 on the conclusion, on behalf of the Union, of the Sustainable Investment Facilitation Agreement between the European Union and the Republic of Angola, OJ L, 2024/829, 8.3.2024.
(5)    Relevé des conclusions du comité conjoint des 12-13 octobre 2023, APE Côte d'Ivoire - Union européenne  https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/5714c6b1-a7b9-42c7-a73a-f5e5e5fa159a/details
(6)    Article 21(2)(e) TEU.
(7)     https://data.consilium.europa.eu/doc/document/ST-8372-2023-REV-1/en/pdf
(8)    Communication from the Commission on a Competitiveness Compass for the EU, COM(2025) 30 final.
(9)    Communication from the Commission to the European Parliament, the Council and the Economic and Social Committee: “The power of trade partnerships: together for green and just economic growth”, COM(2022) 409 final.
(10)    2020 Joint Communication Towards a comprehensive Strategy with Africa https://ec.europa.eu/international-partnerships/system/files/communication-eu-africa-strategy-join-2020-4-final_en.pdf  
(11)     https://www.consilium.europa.eu/media/54412/final_declaration-en.pdf  
(12)     https://www.wto.org/english/tratop_e/invfac_public_e/invfac_e.htm
(13)    Council Decision (EU) 2020/13 of 19 December 2019 amending the negotiating directives for the negotiation of Economic Partnership Agreements with the African, Caribbean and Pacific countries and regions, to the extent that they fall within the competence of the Union (OJ L 6, 10.1.2020, p. 101). In particular, section 6.2, first paragraph of the 2019 negotiating directives, states as follows: “Investment. In accordance with the objective of "reducing and eventually eradicating poverty consistent with the objective of sustainable development" (and with regard to articles 1, 29, 75 to 78, and to Annex II to the Cotonou Agreement and the relevant provisions of its successor agreement, once applicable) the parties agree to establish a framework which shall facilitate, enhance and stimulate mutually beneficial sustainable investment between them, taking into account multilateral initiatives on investment facilitation. This framework will be based on principles of non-discrimination, openness, transparency and stability. The parties will foster the development of attractive and stable investment environments by supporting stable and transparent rules for investors, and seek to improve financial inclusion and access to finance.”
(14)     https://policy.trade.ec.europa.eu/consultations/consultation-trade-policy-review_en  
(15)     http://ec.europa.eu/trade/trade-policy-and-you/expert-groups/  
(16)     http://trade.ec.europa.eu/civilsoc/meetdetails.cfm?meet=11531  
(17)    See World Bank, Retention and Expansion of Foreign Direct Investment, Political Risk and Policy Responses, http://documents1.worldbank.org/curated/en/387801576142339003/pdf/Political-Risk-and-Policy-Responses.pdf

Brussels, 6.5.2025

COM(2025) 192 final

ANNEX

to the

Recommendation for a Council Decision

authorising the opening of negotiations of a Sustainable Investment Facilitation Agreement between the European Union and the Republic of Côte d'Ivoire


ANNEX

Negotiating directives for the negotiations of a Sustainable Investment Facilitation Agreement between the European Union and the Republic of Côte d'Ivoire

I.OBJECTIVES, SCOPE, AND KEY PRINCIPLES

1.The aim of a Sustainable Investment Facilitation Agreement (hereinafter “Agreement”) with the Republic of Côte d'Ivoire should be to create a more attractive, transparent, and predictable investment climate in order to facilitate, enhance, and stimulate mutually beneficial sustainable investments.

2.The overall objective of this Agreement should be to improve the mobilisation, attraction, expansion and retention of foreign direct investment between the European Union and the Republic of Côte d'Ivoire, especially for micro-, small-, and medium-sized enterprises, on the basis of modern and simplified rules, measures and procedures based on principles of impartiality, openness, transparency, and stability.

3.This Agreement should be comprehensive and ambitious, take into account the outcome of the WTO negotiations on the Investment Facilitation for Development Agreement, and the specific development challenges faced by the Republic of Côte d'Ivoire. This Agreement should, in principle, apply to all economic sectors and encompass the whole life cycle of investments, including activities before, during, and following establishment.

4.This Agreement should aim to ensure the right conditions for foreign direct investment to be conducive to sustainable development, while preserving the ability of the Parties to regulate the activity of investors in their respective territories.

5.This Agreement should focus on foreign direct investment to the exclusion of other forms of investment, such as short-term capital movements or portfolio investments. This Agreement should not create new, or modify existing obligations, on the protection of investments, investor-state dispute settlement or preferential market access conditions, and should not cover procedural requirements for the temporary entry and stay of natural persons for business purposes.

II. PROPOSED CONTENT OF THE RULES AND COMMITMENTS

6.This Agreement should include specific provisions on matters such as:

–Improving the transparency, predictability and coherence of investment-related measures (including, inter alia, electronic publication and availability of measures of general application and the legal framework applicable to investment; opportunity to comment on draft regulatory measures, information on investment incentives);

–Streamlining and speeding up administrative procedures and requirements, as well as ensuring good governance in authorisation procedures (including, inter alia, administrative procedures and documentation requirements; use of applications in electronic format; timeframes and periods for the submission and administration of applications; good governance standards in the processing of applications; transparency on the payment of fees; one-stop shop/single window types of mechanisms for applications for authorisation);

–Enhancing the participation of stakeholders (including, inter alia, focal points to serve as first points of contact for investors’ inquiries; relations with stakeholders; dispute prevention and problem-solving mechanisms; impact assessments; domestic inter-agency coordination; linkages between foreign investors and the host economy);

–Contributing to sustainable development and responsible investment (including, inter alia, promotion and enforcement of relevant internationally agreed standards, rules, and commitments on labour, environment, and climate; commitment to relevant internationally recognised instruments on responsible business conduct; dialogue and cooperation on investment-related labour, environmental, and climate issues of mutual interest; implementation of key international conventions and principles to prevent and combat money laundering, terrorism financing, tax fraud and tax evasion); 

–Facilitating the sustainability of investments in value chains and sectors of mutual interest (notably the cocoa sector, building on the commitments set out in the Sustainable Cocoa Initiative and the Roadmap on Sustainable Cocoa, with a view to further facilitate investment and the implementation of relevant sustainability legislation);

–Reinforcing bilateral cooperation on ways to facilitate investment and ensure the implementation of this Agreement (including, inter alia, capacity building aimed at improving the investment climate and assisting in the implementation of this Agreement, including the sustainable development provisions; institutional arrangements to oversee implementation and share information and best practices; mediation and State-to-State dispute settlement mechanisms).