CURRENT STATE OF INVESTMENT FACILITATION Trends, Opportunities & Challenges for IPAs

CURRENT STATE

GLOBAL FDI INFLOW

More than 40% of FDI flows go to developing and transition economies GLOBAL FDI OUTFLOW

STATISTICAL TRENDS FOR IPAS

IPAs select most promising investor home economies for FDI, 2014–2016 IPAs increasingly select developing economies

IPAs’ perception of the global investment climate, by host region, 2014– 2016 Rise in willingness to invest in Developing Countries

IPAs’ perception of the global investment climate, 2014– IPAs are More Optimistic Now about Investment

Global Investment Promotion Best (GIPBC) Practices Report An assessment of 189 national investment promotion agencies (IPAs) shows five out of every six provide little or no information to investors who ask for it as part of their site selection processes, according to a World Bank report More than one-quarter of IPAs achieving a ‘best practice’ rating The global average score for IPA responses to investor enquiries has not exceeded 29% World Bank Report on Responsiveness

INVESTMENT PHILLOSPHY CHANGE FOR IPAS

Project Handling Sectoral and Geographical Orientation Special Task Forces

International Teams Country Selection Foreign Citizen or Native Consultancy or IPA Staff Would missions help? Only FDI but nothing…

Facilitation Does Matter Investment Promotion Agencies; Supports existing investors Promotes the potential Facilitation for new comers Feeds back!

Team-up! RDAs & Local Authorities Expat Executives Abroad Government Bodies Existing Investors Missions Abroad Friends of the country Consultant Companies NGOs International Institutions

Start–up Multi-lingual, professional and dedicated team National and international perspectives Private sector approach to understand the investor mindset Well-prepared strategic plans for better investment facilitation Result oriented execution Efficient public - private cooperation Political support Strategic partnerships with national and international institutions

To facilitate :Before During and After … Mutual Trust Fast and correct service Confidentiality Free of Charge Service

Task Forces Research and analyze Site selection Matchmaking Ease of legal procedures Aftercare services..

A Flowchart COUNTRY / PROVINCE INTERFACE COUNTRY / PROVINCE INTERFACE SECTOR INTERFACE COORDINATING & REPORTING

A Flowchart I- FIRST CONTACT WITH POTENTIAL INVESTOR IV- SENT TO THE PIPELINE III- BUSINESS PLANNING II- DECISION

A Flowchart RDA REPS. OTHERS PROJECT FIRST CONTACT IN IPA INVESTOR’S FORM INVESTOR’S REQUEST PROJECT DESC. FORM ED APPROV AL PD ASSG.

DECISION (ED) DECISION (ED) GO WITH REJECTION PD Identification Coordinator Assignment MORE HOMEWORK TASK FORCE / COUNTRY TEAM A Flowchart

AutomotiveFrench COORDINATOR PD ASSISTANT PD FRENCH AUTOMOTIVE MANUFACTURER PLANING TO OPEN A FACTORY

TASK FORCES COUNTRY TEAMS PROJECT LIFE CYCLE PPPAUTO REAL ES./LD HEALTH AGRO FOOD ICT DEFENCE FINANCEOIZ FZTOURISM WORK PERMITS YOIKKPRENERGYTRANSPMINING COUNTRY 1 FRANCE COUNTRY 3

Without an entrepreneurship ethos, public sector officials cannot fully appreciate the risk- appetite of the investor. The ideal IPA officer to be an entrepreneur

Private sector officials should work for IPAs and IPA officials should spend some time in the private sector. This alternate experience will build a fluid transition to function effectively. Alternating between the two binaries

There must be total harmony between what IPAs promote and what they can deliver. A gap between the two will hurt FDI in the long term and result in loss of country credibility. Link between Promotion and Facilitation

In the zeal to market the best selling points of a region IPAs may over-hype. All promotion must be built on sustainable levels of expectations. Balance expectations

Investor confidence comes from repeated accuracy of information from IPAs. This trust-building approach is what makes investors plunge into a commitment to a country/region. Commitment to facts

The two things that investors value are time-to-market and the responsiveness to ongoing business demands. IPAs must deliver effectively on these two through its one-window solution. Excellence in services

Human capital and the quality of the human resources are the best value an investor can get. Leverage that when negotiating and persuading investors. Sell the people

WAIPA’S OBSERVATIONS ON IPAS NEW INVESTMNET PROMOTION PATTERNS

 More sectoral focus  More specialized areas of investment  Use of digital technologies for promotion have increased  More regional integration and cooperation among IPAs  Time spent on after care now as much as that spent on promotion  Savvy databasing and institutional memory records  Focus on human resource capacity building IPAs Focus is Changing

WAIPA RECOMMENDATIONS FOR IPAS

 Focus on developing a stable business climate  Develop consistency in policies between local and foreign investors  Create task groups for land, research and HR investor facilitation  Develop accurate project feasibilities  Prepare country comparisons that are based on independent reports  Create effective steps to monitor service delivery Recommendations

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