How would you describe the 2023 year from your association’s perspective and the international investment community in general?

The landscape of international investment is in flux, as the world continues to adjust to the seismic changes brought by the pandemic and as various crises impact investor confidence. Last year was a challenging one for foreign direct investment (FDI) and while the latest figures suggest a better-than-expected global performance for FDI, we expect the uncertainty to continue for some time.

Global value chains are shifting – creating both opportunities as well as challenges – and countries are trying to find their place within them. In a volatile environment, one certainty we can be sure of is that FDI is more necessary than ever as a driver of growth and as a key mechanism for sustainable development. And in these challenging market conditions, it is more important than ever for investment promotion agencies (IPAs) to be optimised to the best possible level. This is the core mandate of WAIPA.

While trade and investment barriers are being put up at a worrying pace, we feel strongly that IPAs must collaborate to harness the capabilities and strengths of individual countries, instead of competing against one another.

By fostering a collaborative environment, IPAs can share best practices, exchange knowledge, and leverage each other’s strengths to drive mutual success. Through this internationally-minded, cooperation-driven approach, IPAs can serve as effective champions of global investment and sustainable development.

This is why we at WAIPA remain deeply committed to supporting IPAs in their missions and to providing a platform for building capacity and knowledge sharing.

Where do you see the best opportunities and what will be the best strategy for FDI success in 2024?

As mentioned, we believe international collaboration is the key to success. There are many synergies between IPAs that can be maximised, especially because outbound investment is a growing trend which makes IPAs customers of each other. It is truly a win-win scenario.

A focus on quality is also important. A 2023 survey that we carried out in partnership with consultancy OCO Global found that the vast majority of IPAs now have a strategic focus on attracting quality FDI, although many struggle to define what that means. This research shows that the future of FDI requires a refining of strategies, operating models and performance indicators for IPAs. WAIPA is here to help with this transition.

Increasingly, WAIPA is playing a proactive role in connecting investors and IPAs and in helping IPAs create investable projects. That is why our World Investment Conference 2023, which took place in New Delhi in December 2023, featured for the first time ever an Investor-IPA Connect session, with direct interactions between IPAs and potential investors from diverse industries. This strategic focus promises mutual growth and prosperity, amplifying opportunities for IPAs to attract investments and investors to access prime markets.

We are also educating our members on tapping into sources of investment beyond traditional greenfield FDI, through masterclasses on attracting institutional investment, for example. FDI is evolving, and IPAs’ approach must evolve with it.

Within the paradigm of FDI, the role of IPAs – charged with attracting investment into their cities, regions and countries – cannot be overstated. They are the private sector face of governments, acting as bridges between the public and private sectors. Success for IPAs means more investment, more growth, more jobs created and ultimately, healthier economies. WAIPA has a commitment to empowering IPAs and promoting sustainable development worldwide. Throughout 2024, as always, this will be our focus.

What are likely to be the chief positive influences on strategy in 2024?

In a world teeming with complexities and interconnected challenges, the pursuit of sustainable development stands as a beacon of hope. Achieving this huge task demands not just individual efforts but a unified, collaborative approach. We want to emphasise the pivotal role of collaboration between multilateral institutions in supporting the UN’s Sustainable Development Goals and facilitating FDI.

Multilateral institutions, with their global reach and collective expertise, are the bedrock of our shared aspirations for sustainable development. They serve as a conduit for cooperation, a platform where nations come together to address pressing global challenges. These institutions pool resources, knowledge and influence to tackle issues ranging from poverty and hunger to climate change and inequality.

Collaboration between these institutions can streamline processes, reduce duplication of effort, and amplify the impact of initiatives aimed at promoting FDI. They can share best practices, develop common frameworks, and establish platforms for knowledge exchange. This collaborative approach fosters synergy, allowing for a more efficient and effective utilisation of resources to support sustainable development objectives.

“Within the paradigm of FDI, the role of IPAs – charged with attracting investment into their cities, regions and countries – cannot be overstated.”

Ismail Ersahin, WAIPA

Unlocking the full potential of FDI requires a conducive environment and strategic facilitation, and this is where collaboration among multilateral institutions – as well as collaboration amongst IPAs – is imperative.

Of course, we need international investors to share in these goals with us, and there is a wealth of opportunities in a range of sectors, presented by our members. Real asset investors are essential to the kind of development we all aspire to.

We need to be able to ensure there is more interaction between IPAs and the business community, because that’s a win-win situation for all. Investors are looking at potential investments and where they can put their money and sometimes they cannot find the real opportunities. IPAs are there to provide these opportunities and create investible projects.

We are prioritising quality FDI, not only quantity. If investors are also prioritising quality, sustainable investment, we will have a much better world, with more developed countries and more prosperity for all. 

What do you consider to be the main challenges facing the FDI market and your organisation/membership in 2024?

Navigating uncertainty will remain the primary challenge, along with the pursuit of sustainable development. The world stands at a critical juncture, where the need for equitable development has never been more pressing. We must embrace this collective responsibility, and stand united in our efforts to create a world where economic progress goes hand in hand with social equity and sustainability.

However, we must be aware that countries are in varying stages in their development journey and have their own unique needs and priorities. While the SDGs are a priority, for many underdeveloped countries the situation is not so easy or straightforward and we should not force unrealistic time lines or external pressures on them. 

Our members are also grappling with many of the same issues that private sector organisations face, such as finding responsible and effective uses for artificial intelligence, creating efficiencies while maintaining value, coping with budgetary pressures, and taking into account ESG.

Looking back at 2023, what has given you the greatest inspiration for the year ahead?

I am filled with gratitude for the remarkable progress we have made over the past year. Our joint unwavering commitment and collaboration have yielded great results in terms of strengthening our IPA community and enhancing preparedness for the global challenges that have emerged.

Reflecting on the discussions, learnings, and connections forged throughout the past year, it’s evident that our shared dedication to sustainable economic growth has driven meaningful results. We have grown our membership, which now includes more than 140 IPAs from 100-plus countries, all the while keeping a firm focus on providing value to all members as we expand.

A special mention goes to our community of partner international organisations, with which we have developed meaningful projects to support our members and increase the efficacy of investment promotion policies.

WAIPA’s vision is one of unity, resilience, and adaptability – qualities essential in a rapidly changing global landscape. Together, we can not only respond better to challenges, but create an environment conducive to sustained and inclusive development.