A Road Map for Cotonou Investment Negotiations

The report argues that international investment agreements do not automatically generate economic benefits and proposes a new approach for the Cotonou Partnership. It advocates for an agreement based on the balance between investor rights and public goods, the distinction between pre- and post-establishment rights, and the creation of a Cotonou Investment Fund. The author emphasizes the need for a transparent, legitimate international dispute settlement mechanism to replace existing systems like ICSID and UNCITRAL, and suggests replacing heterogeneous bilateral investment treaties with a single unified agreement.

• The primary objective of a Cotonou Investment Agreement should be to increase long-term foreign investment in ACP countries for activities that align with the host country's sustainable development goals and the Cotonou Partnership Agreement (CPA).
• The agreement should be based on four core principles: a balance between investor rights, development objectives and public goods; legitimacy based on the rule of law; high standards of transparency; and accountability for all actors.
• Pre-establishment rights—which determine areas open for investment—should be limited to those supporting national development strategies and based on positive lists of appropriate industries or sectors.
• Foreign investors should be treated as economic citizens of the host country once an investment is made, meaning they have the same rights and obligations as domestic investors, including the duty to obey the law and support development objectives.
• Existing international arbitration systems, specifically ICSID and UNCITRAL, are deemed unacceptable for deciding matters of development policy and public goods due to a lack of legitimacy, transparency, and accountability.
• The report proposes replacing various heterogeneous bilateral investment treaties (BITs) with a single Cotonou Investment Agreement to more effectively protect investor rights and support development.
• A Cotonou Investment Fund should be established to provide a long-term commitment to the CPA's investment goals, with a specific emphasis on supporting small and medium enterprises (SMEs) and small and vulnerable economies (SVE).
• To monitor the success of the agreement, the report suggests creating an ACP Investment Observatory and using specific criteria such as changes in total long-term foreign investment and the number of jobs created.

APA

von Moltke, K. (2003). A Road Map for Cotonou Investment Negotiations. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/investment_cotonou_inv_roadmap.pdf

Chicago

von Moltke, Konrad. A Road Map for Cotonou Investment Negotiations. International Institute for Sustainable Development, 2003. https://www.iisd.org/system/files/publications/investment_cotonou_inv_roadmap.pdf.

Wikipedia

{{cite report |last1=von Moltke |first1=Konrad |title=A Road Map for Cotonou Investment Negotiations |publisher=International Institute for Sustainable Development |date=April 2003 |url=https://www.iisd.org/system/files/publications/investment_cotonou_inv_roadmap.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vonmoltke2003road, author = {von Moltke, Konrad}, title = {{A Road Map for Cotonou Investment Negotiations}}, institution = {International Institute for Sustainable Development}, year = {2003}, month = apr, url = {https://www.iisd.org/system/files/publications/investment_cotonou_inv_roadmap.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }