- There is hereby established a Development Fund for the purpose of providing financial or technical assistance to disadvantaged countries, regions and sectors.
- Subject to the provisions of this Article and relevant provisions of this Treaty, the Community Council, in collaboration with COFAP, shall:
(a) determine the status, composition and functions of the Development Fund; (b) determine the contributions of the Member States to the Development Fund.
- The Development Fund may accept subventions from public or private sector entities of the Member States or from other entities external to the Community. Subventions shall not be accepted nor applied by the Development Fund on conditions which discriminate against Member States, regions or sectors except in accordance with the provisions of this Treaty.
COFAP shall promote investment in disadvantaged countries by, inter alia, facilitating:
(a) the establishment of joint ventures among nationals of disadvantaged countries as well as between nationals of disadvantaged countries and nationals of other Member States;
(b) the establishment of joint ventures between nationals of disadvantaged countries and nationals of third countries;
(c) investment for economic diversification including diversification of the agricultural sector;
(d) research, development and the transfer of technology in the development of disadvantaged countries; and
(e) capital flows from other Member States to disadvantaged countries through the conclusion of double taxation agreements and appropriate policy instruments.
Subject to the authority of the Conference, COTED and COFAP, as appropriate, shall establish, administer and monitor the measures identified in Article 143.
- The Member States shall, in order to ensure the proper functioning of the CSME, remove among themselves:
(a) restrictions on the movement of capital payments;
(b) restrictions on all current payments including payments for goods and services and other current transfers.
- COFAP, subject to the approval of the Conference, shall establish in collaboration with the Committee of Central Bank Governors a programme for the removal of the restrictions mentioned in paragraph 1 of this Article.
- For the purpose of this Article, capital and related payments and transfers include: (a) equity and portfolio investments;
(b) short-term bank and credit transactions;
(c) payment of interest on loans and amortization;
(d) dividends and other income on investments after taxes;
(e) repatriation of proceeds from the sale of assets; and
(f) other transfers and payments relating to investment flows.
- Subject to the provisions of this Chapter, the Member States shall remove discriminatory restrictions on banking, insurance and other financial services.
- Subject to the approval of the Conference, COFAP, in consultation with other competent Organs of the Community, may exclude certain financial services from the operation of the provisions of this Article.
- Subject to the provisions of Article 221 and Article 222, the Member States shall remove restrictions on the right of establishment of nationals of a Member State in the territory of another Member State.
- The removal of restrictions on the right of establishment mentioned in paragraph
1 of this Article shall also apply to restrictions on the setting up of agencies, branches or subsidiaries by nationals of a Member State in the territory of another Member State.
- Subject to the approval of the Conference, COTED, in consultation with COHSOD and COFAP, shall, within one year from the entry into force of this Treaty, establish a programme providing for the removal of restrictions on the right of establishment of nationals of a Member State in the territory of another Member State. The programme shall, inter alia:
(a) identify the activities in respect of which the right of establishment shall not apply;
(b) establish the conditions under which the right of establishment is to be achieved; and
(c) set out the conditions, stages and time-frames for the removal of restrictions on the right of establishment.
- The Community Council may authorise a Member State whose nationals have been aggrieved by the violation of obligations set out in this Article, Article 32, Article 36 and Article 37 to take such measures as may be provided for in this Treaty.
- The Member States shall not introduce in their territories any new restrictions relating to the right of establishment of nationals of other Member States save as otherwise provided in this Treaty.
- The Member States shall notify COTED of existing restrictions on the right of establishment in respect of nationals of other Member States.
- (1) The right of establishment within the meaning of this Chapter shall include the right to:
(a) engage in any non-wage-earning activities of a commercial, industrial, agricultural, professional or artisanal nature;
(b) create and manage economic enterprises referred to in paragraph
5(b) of this Article.
(2) For the purposes of this Chapter “non-wage earning activities” means activities undertaken by self-employed persons.
- The Community Council may, with the approval of the Conference and upon the recommendation of COTED or COFAP, as the case may be, enlarge the body of rights provided in paragraph 3 of this Article. The competent Organ shall establish basic criteria for Member States in order to safeguard against manipulation or abuse of such rights so as to gain an unfair advantage against other Member States, for example, in the areas of nationality criteria and in the operation of companies.
- For the purposes of this Chapter:
(a) a person shall be regarded as a national of a Member State if such person – (i) is a citizen of that State;
(ii) has a connection with that State of a kind which entitles him to be regarded as belonging to or, if it be so expressed, as being a native or resident of the State for the purposes of the laws thereof relating to immigration; or
(iii) is a company or other legal entity constituted in the Member State in conformity with the laws thereof and which that State regards as belonging to it, provided that such company or other legal entity has been formed for gainful purposes and has its registered office and central administration, and carries on substantial activity, within the Community and which is substantially owned and effectively controlled by persons mentioned in sub-paragraphs (i) and (ii) of this paragraph;
(b) “economic enterprises” includes any type of organisation for the production of or trade in goods or the provision of services (other than a non-profit organisation) owned or controlled by any person or entity mentioned in sub- paragraph (a) of this paragraph;
(c) a company or other legal entity is:
(i) substantially owned if more than 50 per cent of the equity interest therein is beneficially owned by nationals mentioned in sub- paragraph (a) (i) or (ii) of this paragraph;
(ii) effectively controlled if nationals mentioned in sub-paragraph (a) of this paragraph have the power to name a majority of its directors or otherwise legally to direct its actions.