Innovations in Foreign Direct Investment Attraction

9. Broker meetings between investors and SMEs, which can be through 1:1 meet-

ings and/or matchmaking events to create linkages between pre-screened and quali-

fied investors and potential suppliers; and

10. Put in place clear targets regarding the number and value of supplier contracts 

to secure and foreign investors in the supply chain to attract and monitor and evalu-

ate the success of the program and how it can be further improved.

The budget and resources required to develop a supply chain program can be signif-

icant, depending on the scope of the program and whether the program is focused 

only on matchmaking or whether it also includes SME capability development. 

The IPA resources needed also depend on whether the IPA decides to develop the 

program fully in-house or partner with other institutions to provide the service. At 

a minimum, it will be essential for the IPA to employ senior supply chain experts 

with significant industry experience in the sectors being targeted for supply chain 

development.

The scale of the program also depends on the existing foreign investors a country or 

region has already attracted. For example, if the location has a strong base of auto-

motive manufacturing or tourist resorts, then the opportunity should be very high 

for supply chain development, while if a location is primarily focused on business 

services then the opportunities and therefore resources to be allocated will likely be 

far lower. The sectors and absolute volume of FDI already attracted will be a strong 

determinant of the resources an IPA should allocate to supply chain development.

It is recommended that for a location with a strong existing base of investors with 

high potential for supply chain linkages, 15-30% of the IPA budget and resources 

be deployed for supply chain linkages and development. For locations with either a 

focus on sectors with more limited opportunities for supply chain linkages, or which 

have attracted a low volume of FDI, 5-15% of the IPA budget and resources are to be 

allocated.