The EU hopes a first-of-a-kind investment deal with Angola will increase access to key resources needed for the green transition, while encouraging the west African state no to become over-reliant on its substantial oil reserves.

The European Commission says a new sustainable investment deal with Angola will create a better environment for EU firms to invest in green energy, agriculture and essential minerals, helping prevent over-exploitation of its fossil fuel reserves.

The EU-Angola Sustainable Investment Facilitation Agreement (SIFA) was the first of its kind, the EU executive said as the agreement entered into force over the weekend, and would also give the huge west African country improved access to the European market.

The agreement would also help Angola – which has oil reserves comparable in size to those of Norway – in its “efforts to diversify its economy beyond fossil fuels”, the European Commission said.

Last October, the EU signed strategic partnerships with other African countries — Democratic Republic of Congo and Zambia — to develop the ‘Lobito Corridor’, a key transit passage connecting the two countries with Angola and meant to develop value chains of critical raw materials.

Angola boasts vast reserves of copper, cobalt, manganese and lithium, elements essential for the electrification of sectors from transport to manufacturing that currently rely on fossil fuels.

Trade Commissioner Valdis Dombrovskis said the SIFA agreement would “help diversify the Angolan economy and support responsible investment practices”.