Professional Documents
Culture Documents
SUBMITTED BY:
BIHINDI N. KHATIB
ZIPA-ZANZIBAR
OCTOBER, 2008
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1.0 INTRODUCTION.
The tour started by the Director General of ISA presented the overview of
investment promotion outlining progress of Sweden inward investment
promotion activities which started back in 1995 (i.e. some 13 years ago) when
ISA was established. At the beginning, the activities were more of information
gathering then information and marketing and now selling Sweden with the
hard and real facts of doing business in the country. Then, WAIPA and UNCTAD
being organisations that wish for other countries to learn from the country like
Sweden on the investment promotion. Sweden before 1995, it was investing
abroad and some countries were showing interest to invest in Sweden. The
country has been successful for a short time. They wish for the participating
member countries to improve their investment strategies using ISA example.
The WAIPA member countries attended the study tour were Afghanistan,
Bulgaria, Colombia, Gambia, Italy, Jamaica, Latvia, Maldives, Mexico, New
Zealand, Nigeria, Pakistan, Sierra Leone, Slovenia, Spain, Tanzania, and
Uganda. The officers attended ranging from Directors, Senior Investment and
Investment Officers of different IPAs, Regional IPAs, and advisors in investment
matters to Researchers and Consultants.
The sessions were so interesting and learning process with many questions
raised by the participants. The sessions covered ISA as a one stop shop for
information, followed by ISA as a sales organisation, the role of policy advocacy
as research actions under ISA. Then related institutions that work hand in hand
with ISA, these include Swedfund International, Seagull and the Swedish
Institute. Thereafter, the link between investment promotion and economic
development, Showcase of regional cluster at Kista Science City. Then Study
tour to different industries promoted by ISA and lastly wrap up discussions from
different participants.
Invest in Sweden Agency was established in 1995 where Sweden realise the
need to promote inward investments where there were many enquiries on the
subject. The main mission is to attract FDI in Sweden to enhance
competitiveness and promote growth. The key to the success of this Agency is
professionalism and business oriented.
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started as information gathering agency (provide facts for business and
investment opportunities available), followed by package information and
marketing (where identifies type and kind investments Sweden wants) and now
it is sales oriented (where now involved in product development and new
sector development to maintain competitiveness of Sweden SMEs).
Third mission
ISA also is benefiting from multiplier network, these include Regional partners
(who are responsible to identify the investment they need in the region),
consultants (legal, tax, accounts and so on). ISA share advices from consultants
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and researchers (from different innovation universities and institutes) and
regional co operations.
In these sectors, there are specialisation staffs. They are project managers and
they are expert in the field and know the investors what they are looking
forward to invest.
ISA at the end negotiate and present a solution to investor and regional
partners. The negotiation and evaluation are the continued processes as if ISA
identified that this investor can be approached and negotiated to invest more.
Regional partners have mandates to aftercare so as to identify whether the
investors in their regions need to expand business. Regional Partners and ISA
have parts to play in order to maintain investors not to shut down or move out
of Sweden and expand their business. ISA aims at competetitivess of Sweden as
a small country in Europe with 9 million people.
The role of the policy advocacy takes long time and patience to change the
policies for suiting competitive business environment. To convince politicians is
a difficult deal to make. This section has only one researcher, responsible to
find out what impinging legislations that hinder inward investments in Sweden.
The findings resulted from Audit Committee report that draw report on the
impinging issues to be addressed to the cabinet. For example: ISA proposed 8-
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10 years ago to the cabinet to reduce corporate tax rate from 28% to 25%, the
cabinet has only approved now and soon will operate at 26.%.
Swedfund is a new thinking for new markets, is a risk capital company owned
by the Swedish Government for investment in emerging markets, now it is in
and looking for partnership with different companies in Africa, Asia, Eastern
Europe and Latin America.
Examples of the successful projects in Africa are MTN Uganda 1999, Addis
Cardiac Hospital 2006, Dahaco in 1985 sold in 2000- Swissport and so on.
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increased renewal, growth and employment in each respective
country/region.
The areas of cooperation are moving images, ageing and health, biotech
and clean tech. Target groups are Top researchers, managing directors
of SMEs, investors, business developers, politicians and policy makers.
Collaboration opportunities are in the form of direct investments,
research and development, joint ventures, strategic alliances and so on.
The collaboration strategy can be through agencies to agencies, cluster,
and companies.
The Swedish Institute has 63 years of public diplomacy, putting Sweden in the
world map and promotes intercultural relations. Its functions are:-
1. Promotion of Sweden.
This includes increase awareness of Sweden worldwide; inform general
public including journalists, shapers of public opinion and decision
makers abroad. Set strategic communication activities to brand Sweden.
The Sweden Brand platform promotes the aim of tourism, investments,
export, politics, talent/exchanges and culture. This encompasses Visit
Sweden Agency, Invest in Sweden Agency (ISA), Trade Council, Foreign
Ministry and The Swedish Institute. These institutes are working together
to Brand Sweden that is: focuses on the road to an updated image of
Sweden abroad and formulate thematic priorities to Progressive Sweden.
These priorities for 2007-2010 include the sustainable society, the new
progressive Sweden, the open, inclusive and non-hierarchical society.
2. Development cooperation.
This includes development without borders. Building long-lasting
relationships through scholarship and grants designed to support
exchanges between culture, science and technological progress and by
creating intercultural relations through meetings, exchanges and the
building of networks around the world.
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regions. Regional cooperation enhances cooperation with players in
municipalities, counties and regions. ISA must therefore spend time on;
competence development together with the regions, assisting the
regions and get assistance from the regions.
Sustainable growth:
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Long-term economic growth which is also socially and ecologically
sustainable
Innovation systems:
Actors in business, research and politics who generate
and use new technology and new knowledge in collaboration, for
sustainable growth
Triple Helix:
Collaboration and coordination between
business, research and politicians/society
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1) Always focus R&D on new business
2) Deliver and communicate early results
3) Innovation support: pragmatic & hands-on
4) Strong and fully empowered Management team
5) High level “no-nonsense” Board
6) Easy-to-understand & well defined targets
7) You can never have too much publicity
8) Ensure the common vision by story telling
2) Automation Region
Automation Region envolve Industry, universities and society in
cooperation, it is a cluster of companies with the following tasks:
• Put the region on the worldmap
• Improve profitability of members
• Contribute to new businesses and innovations
• Work with issues concerning competence
• Cooperate with research, academy and society
• Indicate the importance of automation business
Automation region is a World leading in Process automation,Power
automation,Steering and monitoring of power grids,Robotics,
Transport automation. There is a lot of competence within the field
of automation and envolved with World leading research units.
CONCLUSION
Lessons learned from the WAIPA Study Tour organised by Invest in Sweden
Agency (ISA) sponsored by UNCTAD are:-
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2. Triple Helix assists ISA to work closely to the politicians, private sector and
academicians. ISA is more organised and committed to facilitate investors. This
resulted in setting the priority sectors to promote, establishing right products
for the customers they serve. Most important to improve policies, regulations
and laws for the business to prosper in a country. ZIPA should learn from this
concept as it will be able to identify right products, improve business friendly
environment and committed to develop the regions and country in general.
ZIPA should work closely with Regional, academics and business community to
work on new sectors of investments to be promoted.
3. ISA attracts investors without tax incentives, although this depends on the
development level of the country, but well organized system attracts
investments without generosity of providing tax incentives. ZIPA and Zanzibar
can be organised and committed to provide better environment. Facts sheets
are most important for smooth business/investment procedure and it can be
freely available. Zanzibar should own one information, and government official
have to be helpful, responsible and service minded.
5. ISA has One Stop concept for information which is of not keeping different
officials in one office but of collecting and provide right information from
different Swedish Government Institute then direct/guide investors for ease
establishments in Sweden. ZIPA should apply this concept as it is more
convenient then the officers under one roof without their department’s
decision/mandate. ZIPA can compile information and link websites so that they
are easily accessible to investors.
6. From ISA views investment decisions takes time (from 3 months to 3 years
depending on the nationality of the investor). Therefore, building of interest to
the investor to settle in a country need targets and follow up on investments,
this resulted to the right choice of investments for the country. Seriousness of
the investors can be followed by the way investors are responding to email and
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website. ISA is responding to any inquiry via email and website within the same
day and inform them that they get back to the investor within 2-7 days
depending on the specialized sector. IPA should target/identify investors that
are willing to expand their investments and follow them to settle. ZIPA should
improve the website and email correspondences and be able to determine the
seriousness of the investor through correspondences. Regions should know
exactly products and priority sectors to be promoted for their economic growth
and developments.
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ZIPA need to achieve then design action plan. This can be presented by
problem tree, then draw objective tree which will lead to the selection
of actions that the organization requires to take. Hence overall goal will
have project purpose that will lead to outputs then activities. For ZIPA
to adapt to Management of Trade and Investment Insurance, attached
herewith is the Action Plan.
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