Malawi to benefit from WTO investment facility

Malawi stands to benefit from a potential surge in foreign investments following strong backing for the Investment Facilitation for Development (IFD) Agreement at the World Trade Organisation’s 14th Ministerial Conference (MC14) in Cameroon. The growing momentum was underscored yesterday during the closing negotiations of the WTO 14th Ministerial Conference in Yaoundé where Malawi, alongside other 164 out of 166 WTO members, supported a proposed decision to integrate the agreement into the WTO framework. However, consensus on formal incorporation was not reached, which means negotiations will continue.

Participating countries signalled determination to push ahead. In a joint declaration, members reaffirmed their commitment to fast-track the agreement’s entry into force and step up technical support to ensure effective implementation. Reads the joint statement in part: “The IFD Agreement contains provisions for developing and least-developed country members to receive technical support for implementation so that they can fully benefit from the agreement.” WTO estimates that implementing the agreement could increase global FDI by at least 9.1 percent and raise global gross domestic product by almost one percent over 10 years.

At the conference, several members and partner financial institutions announced new support for IFD Agreement needs assessments and related implementation efforts. They include the European Union which indicated that the European Investment Bank would provide financing of up to 300 million euro for mature projects in targeted countries which are party to the IFD Agreement, with the potential to mobilise close to 1 billion euro in total investment. Meanwhile, the conference ended yesterday without a final agreement after ministers failed to break a deadlock on key issues despite prolonged negotiations.

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Conference chair and Cameroon’s Trade Minister Luc Magloire Mbarga Atangana said ministers made efforts to settle outstanding matters but fell short. WTO director-general Ngozi Okonjo-Iweala acknowledged the lack of a final deal, but said discussions would continue, with outcomes expected at the next ministerial meeting.

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