African States Launch Regulatory Audits to Implement AfCFTA Investment Protocol

A hydro-electricity dam surrounded by lush vegetation.

In early 2026, AfCFTA member states began systematic Regulatory Audits to align their domestic investment frameworks with the AfCFTA Protocol on Investment (adopted in 2023). The exercise prioritises the termination or renegotiation of older BITs that conflict with the Protocol’s sustainable development and human rights mandate. The Protocol imposes binding obligations on investors, including requirements for environmental impact assessments and anti-corruption standards, while preserving the sovereign right to regulate for development goals. Africa is positioning itself as a global leader in “next-generation” investment regimes. By imposing binding obligations on investors—not just on states—and by mandating environmental and anti-corruption standards, the AfCFTA Protocol shifts the balance of rights and responsibilities in investment law. If fully implemented, this could reshape global norms on investor obligations and provide a powerful model for integrating sustainable development into investment agreements worldwide.