News
India’s China FDI Gamble
The Diplomat
In the midst of a global pandemic and looming fears of considerable growth deceleration, Narendra Modi’s government took a major decision to ban foreign direct investment (FDI) under the automatic route from countries having land borders with India. The amended FDI policy is aimed at preventing “opportunistic takeovers” of Indian companies amid the COVID-19 pandemic. Analysts worry that, in the post-COVID period, Chinese companies will buy up distressed assets for a throwaway price.
Foreign investment is drying up thanks to COVID-19. But there may be a silver lining
World Economic Forum
The COVID-19 case has created massive uncertainty in global capital flows. Governments might be wise to introduce short-term protections, but they must not be over-cautious. The post-crisis winners will open early to foreign investment.
AfCFTA and the Upcoming Protocol on Investment: What Can Investors Expect?
Théobald Naud, Maxime Desplats and Ophélie Divoy , DLA Piper
In 2012, African states set out with the ambition to establish an unprecedented ‘Continental Free Trade Area’. Negotiations were launched under the aegis of the African Union with the primary objective of ‘boosting intra-Africa trade’. The agreement would give rise to the creation of an impressive single market for goods and services of 1.2 billion people with a combined GDP of more than US$2.2 trillion. The ongoing discussions between Member States on the Investment Protocol have not been made public. However, investors will look to recent developments in the field of investment protection, in particular on the African continent, for an indication of what to expect.
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