Environment and investment specialists have warned that Africa’s investment policies are inadequate.
This trend is leaving its people increasingly vulnerable to the severe impacts of climate change.
A Civil Society Forum, drawing participants from over 20 African countries, has convened to demand reforms prioritising sustainability, equity, and community well-being over unchecked growth and profit.
Held under the theme “Aligning Investment Policy Frameworks to Climate and Sustainable Development Goals,” the forum comes at a critical time when the continent is facing harsh climate change impacts such as landslides, drought, and floods.
Despite contributing only a fraction of global greenhouse gas emissions, Africa bears a disproportionate burden of climate disasters, and many of its policies, activists warn, are enabling further harm.
A Ugandan official from the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) who attended the forum highlighted a troubling trend of private-sector dominance in shaping market policies.
“African nations need to adopt investment policies that confront the twin crises of climate change and debt while attracting ethical investments,” said Jane Nalunga, Executive Director of SEATINI in Uganda.
“What do we need to do? We must energise the struggle,” Nalunga added, emphasising the need for unified, people-centered solutions.
The official further warned against “scattered voices” in the Global South, with some nations rejecting exploitative treaties while others embrace agreements like the Investment Facilitation Agreement (SIFA).
According to Nalubega, it’s essential to have policies that prioritise labour rights, environmental integrity, and community welfare, rather than pandering to powerful multinational corporations.
Power of Multinationals
The forum further spotlighted the influence of multinational corporations, often shielded by outdated treaties that place profit over people.
Fernando Hernandez Espino, Senior Trade and Investment Policy Officer at Both Ends, maintained that mechanisms like the Investor-State Dispute Settlement (ISDS) allow corporations to sue governments for enforcing environmental protections.
“Investment policies have drained public resources in developing countries,” Espino said, citing a case where the Netherlands was sued for imposing stricter environmental regulations.
These legal battles disproportionately hurt poorer nations, which lack the resources to defend themselves.
Espino and others called for urgent reform of such systems, which they condemned as outdated and unjust.
Financing Climate Fight
At COP29, developed nations pledged $300 billion to help developing countries address climate change.
However, SEATINI Uganda’s Programmes and Communications Manager, Herbert Kafeero, dismissed the amount as insufficient compared to the scale of Africa’s climate challenges.
“We need a united voice to demand fair financing,” Kafeero said, stressing that much of the funding focuses on mitigation, while Africa urgently needs support for adaptation.
Dr. Rob Davies, a former South African Minister of Trade and Industry, echoed this concern, noting that Africa experiences the worst effects of climate change, with impacts twice the global average.
“Science tells us that Africa’s greatest need is adaptation,” Davies said.
He also urged African nations to follow South Africa’s lead by lapsing exploitative Bilateral Investment Treaties (BIPAs) to reclaim sovereignty over corporate demands.
What Next?
The experts agreed on the need for transformative policies to empower Africa in the green economy.
Dr. Davies stressed that investment frameworks must enforce value addition and localised production to ensure Africa benefits from the global shift to sustainable technologies.
“Rooted in old paradigms, our policies fail to address today’s challenges like climate change and inequality. Reform is urgent,” he said.
The forum’s key message was clear: Africa must unite in demanding investment policies that respect human rights, prioritise environmental sustainability, and hold corporations accountable.
“Only then can the continent transition from being a victim of climate change to a leader in sustainable development,” Davies stated.
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