The recent African Continental Free Trade Agreement (AfCFTA) will offer both greater opportunities for ECOWAS Members within an integrated continental market as well as increased competition for footloose investment. This implies an even greater need to focus on raising the competitiveness of the region for sustainable investment.

West Africa offers a large and diverse market of over 400 million people and natural resource wealth, yet it is not currently living up to its potential as a destination for international investment. Inflows of foreign direct investment (FDI) in the region have stagnated, in spite of some modest improvement in 2021. Furthermore, FDI in the region has not always fulfilled its promise in terms of promoting sustainable development. No single factor alone can explain this trend, but it strongly suggests that the region does not sufficiently provide a conducive environment for sustainable investment. Beyond political instability and strife, elements commonly cited within the region include fragmented regulatory frameworks, small market sizes, and insufficient infrastructure and skills.

This chapter provides an overview of recent foreign direct investment (FDI) trends in ECOWAS, including a preliminary assessment of its contribution to sustainable development. It then summarises key messages and main considerations that emerge from the substantive chapters of the report.

This chapter undertakes a baseline comparative analysis of the legal framework governing investment at the continental, regional and national levels in ECOWAS. The analysis focuses on how governments in ECOWAS are incorporating sustainability dimensions into their national treaties and domestic investment laws, as well as on the coherence between action at the national, regional and international levels.

This chapter provides an overview of investment promotion agencies (IPAs) in ECOWAS Member States and on their main priorities and efforts to attract sustainable investment. It also draws on the experience of other regions to provide lessons on better targeting FDI to support sustainable development and sharpening the indicators used for this purpose.

This chapter looks at tax incentive design and policy goals within ECOWAS and compared to peer regions, based on an analysis of CIT incentives in selected ECOWAS Member States. The analysis is based on comparable data from the OECD Investment Tax Incentive Database, covering CIT incentives across 52 developing and emerging countries.

Foreign direct investment (FDI) can contribute the needed financial and technological resources to deliver green growth. This chapter discusses the specific enabling conditions for green investment in ECOWAS, including key elements of the broader framework for environmental protection, and policies designed to attract and facilitate green FDI.

This chapter first explains the relevance of responsible business conduct (RBC) in the ECOWAS region and the key elements of RBC. It then gives an overview and analysis of policies and initiatives relevant for RBC in ECOWAS at regional and national levels, as well as access to remedy and stakeholder awareness of RBC.