A Road Map for Cotonou Investment Negotiations

This report, produced by the International Institute for Sustainable Development (IISD) for the Commonwealth Secretariat, provides a strategic framework for negotiating a Cotonou Investment Agreement. It argues that investment agreements must balance investor rights with the sustainable development goals of ACP countries, emphasizing transparency, accountability, and the need for regional institutional support over traditional bilateral investment treaties.

• The primary purpose of a Cotonou Investment Agreement is to increase long-term foreign investment into ACP countries for activities that support the host country's sustainable development goals, in alignment with the Cotonou Partnership Agreement (CPA).
• The report proposes four core principles for the agreement: 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 define areas open for investment—should be limited to those supporting national development strategies and based on positive lists of appropriate industries or sectors.
• The report suggests that foreign investors should be held to minimum international standards of conduct, including adherence to ILO core labour standards, human rights instruments, anti-corruption responsibilities, and ISO 14,000 environmental management system standards.
• Existing international arbitration systems, specifically ICSID and UNCITRAL, are described as unacceptable for deciding matters of public goods and development policy due to a lack of legitimacy, transparency, and accountability.
• The report recommends replacing existing heterogeneous bilateral investment treaties (BITs) with a single Cotonou Investment Agreement to more effectively protect investor rights and support development.
• A proposed Cotonou Investment Fund should be established to support the agreement's objectives, with a specific emphasis on small and medium enterprises (SMEs) and small and vulnerable economies (SVE).
• To monitor the agreement's success, the report proposes the creation of an ACP Investment Observatory and the use of specific criteria, such as changes in total long-term foreign investment and the number of jobs related to foreign investment.

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} }