Africa as a continent is on the cusp of what could be a break in a decades-long cycle of poverty and economic shortcomings. Whether this cycle will be broken will depend on the ability of African nations to put in place policies that attract and protect foreign and intra-African investment. These policies must demonstrate to investors that the rule of law will be upheld; that equitable, local dispute settlement is possible; and that potential gains will be greater than the risks involved in investing in the continent. The enactment of the AfCFTA (or “the Agreement”), as previously discussed throughout this book, was a huge step in the right direction. This Agreement lays a solid foundation for increased intra-African trade in both goods and services, and looks to build on the collective strengths of African nations and citizens.

For AfCFTA to fulfil its potential, African nations must be focused on attracting greater FDI, both from within and outside the continent. As noted in a recent study by the World Bank, one of the most important aspects of the AfCFTA is the possibility that it will be able to substantially increase the flow of FDI into the continent.

Increased FDI has the potential to create jobs and attract advanced technology and expertise. Foreign investment, if managed well, can build local capabilities and forge the connections that help countries integrate into regional and global value chains. This, in turn, could have a substantial impact on Africa’s dependence on extractive industries, and could build a more robust, sustainable economy across the continent. The importance of promoting resilient economies cannot be overstated, given the current ever-fluctuating global economy. Increasing investment on the continent, across industries, will be essential to Africa’s efforts in becoming resilient. As the World Bank has noted, greater FDI through deep integration could raise Africa’s exports as much as 32% by 2035, with intra-Africa exports growing by 109%, especially in the manufactured goods sectors. Whether these huge gains will become a reality depends, in large part, on the ability of African nations to refine key components of the AfCFTA more clearly.