New World Bank research shows the agreement among 54 countries would likely draw more foreign direct investment, amplifying its benefits
Imagine that a large African textile company wants to set up a new factory in a neighboring country to help establish a regional value chain for its production. It would likely face many months of cumbersome paperwork to obtain the necessary approvals and receive an investor license. Visa restrictions may make it difficult to bring in specialists to train local staff, while other staff may not even be allowed to work because their professional degrees are not recognized. Even after it is operational, the firm’s shipments of components could be hindered by traffic jams at border crossings, duplicative paperwork, and countless rounds of inspections.
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