The document outlines a framework for enhancing foreign direct investment (FDI) aimed at boosting local employment, creating import substitutes, and improving national economic conditions. It discusses strategies for attracting, transforming, and retaining investors by harnessing local strengths, understanding industry contexts, and managing investor relationships. Additionally, it emphasizes the importance of addressing disadvantages and providing effective support to ensure sustainable investment success.

1. Foreign Direct Investment
Providing a framework . . .
Christopher Pike MA(Oxon) MBA MRICS

2. Providing a framework . . .
• OBJECTIVES
• To increase local employment
• To produce substitutes for imports
• To improve the balance of payments
• To collect taxes to support public spending
• Pursue satisfying and successful development
of the economy and society of your country

3. STRATEGY
Development by attraction, location and retention of FDI
• Attract
Bring activities & investors appropriate to your location
• Transform
Convert selected prospects into definite investors
• Retain
Create and ensure the conditions to stay sustainably
•

4. Attract
Attract the most appropriate activities & companies
Determine your strengths – and focus on them
Validate internally – obtain commitment from existing actors
Test regional relativities – complementary or competitive?
Benchmark widely – companies see beyond your region
Discover the essence of each new investor’s business –
not their business model, but their business vision
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5. Transform
Be attentive to industry context and corporate culture
Timeliness – Don’t just surprise, delight an incoming candidate
Standard welcome package ? There’s no such thing !
Be realistic – The story can never be better than the product
Stay realistic – What went wrong last time ? Lost sales . . .
Cost factors – Vary by region : model the real cost of operating

6. Retain
How will the new arrival change the map ?
Identify and engage the hidden supporters
Where are the cases of risk of loss ?
What are motives for potential leavers ?
Exploit complementarity : Origin / Industry / Language
Adopt a future Cluster mindset well in advance

7. Effective location : optimal / least cost to incoming investor
•
Make ongoing policy as clear as outline advantages
Demonstrate the fit – utilise existing local companies
Respond to Investor definitions of market criteria
Face up to the downside – Know your disadvantages,
the Investor will find them
ATTRACT

8. TRANSFORM
Admin is EDA business – who covers Project Management ?
Incentives – Confirm your offering – keep some spare cards
Extras – Can you provide extra, site-specific infrastructure ?
Realism – Local delays perceive as your fault / responsibility

9. RETAIN
How has the new arrival changed your investor map ?
After Sales
What later services does newcomer generate or require ?
Potential for clustering
Engage established actors with incoming investors

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