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Investment Policy and Promotion Workshop for ECOWAS Member States and the Private Sector in West Africa
June 6-8, 2017Intercontinental Hotel, Lagos, Nigeria

The Economic Community of West African States (ECOWAS) and the World Bank Group will co-host the ECOWAS Investment Policy and Promotion Workshop in Lagos, Nigeria from June 6-8, under the European Union funded Improved Business and Investment Climate in West Africa Project. The Project is implemented by the World Bank Group and seeks to address a range of investment policy issues that constitute barriers for the private sector to invest efficiently across the region.

Over 70 public and private sector representatives from 15 Member States of ECOWAS, as well as representatives from the ECOWAS Commission, the West African Economic and Monetary Union (WAEMU), the European Union, and the World Bank Group will attend the two-day event.

The purpose of the workshop is to provide a forum for ECOWAS Member State governments, ECOWAS and WAEMU Commissions, key Private Sector representatives, and World Bank Group staff to interact and discuss key investment policy issues and reform priorities in the ECOWAS region, and for participants to deepen their familiarity and understanding of Investment Policy and Promotion (IPP).

The workshop aims to:

  • Discuss the role of an open investment policy and a conducive investment climate in the attraction of investment from investors’ perspectives.
  • Discuss how countries can promote new investment, especially in new sectors, and encourage the retention and expansion of existing investment, with a focus on fragile and conflict situations.
  • Share insights on leveraging Foreign Direct Investment (FDI) and the evolving international investment environment to achieve domestic business environment reforms in the ECOWAS region.
  • Learn about the WBG’s IPP offering and how it can serve as a “connector” between domestic reform, regional reform and development, and review concrete experiences and lessons from experts related to IPP reform in practice.

For more information, please contact: Obiajulu Ihonor, Senior Private Sector Specialist, oihonor@ifc.org

Day 1, Tuesday 6 June 2017

Time

Session

09:00 – 09:30

Registration

09:30 – 10:00

Welcome Remarks
  • Mr. Peter Oluonye, Principal Program Manager, Industry and Private Sector Directorate, Economic Community of West African States (ECOWAS) Commission
  • Ms. Khady Evelyne Denise Ndiaye, Head of Private Sector Promotion Department, West African Economic and Monetary Union (UEMOA) Commission
  • Ms. Yewande Sadiku, Executive Secretary, Nigeria Investment Promotion Commission
  • TBD, Federal Ministry of Industry, Trade and Investment (FMITI)
  • TBD, European Union (EU) Delegation to Nigeria
  • Obi Ihonor, ECOWAS Investment Policy Project Leader, World Bank Group

Panel 1. Investment Fundamentals: What and Why?

10:00 – 11:00

Session 1.1. FDI Evolution, Trends and Role in Development

Before 1990, annual global FDI inflows had never exceeded $200 billion. However, globalization ushered in an era of markedly increased investment movement within and across borders. Even during the last decade, which has been marked by the global financial crisis and persistent macroeconomic problems in the major economies of the EU and Japan, annual global FDI inflows have averaged $1.5 trillion. UNCTAD reported FDI flows to developed economies dipped by 9% in 2016, whereas FDI flows to transition economies rose by 38%. Evidence shows a compelling case for FDI: foreign investors can create jobs, bring capital and technologies, create knowledge spillovers, help local companies integrate with GVCs, and drive economic growth in general. But these potential benefits are not automatic and far from guaranteed. Attracting, establishing, retaining and expanding foreign investment is a complicated matter – especially for a developing economy. It requires understanding what draws investors to certain locations and not others. This session aims to cover the following:

  • Evolution of FDI, and new trends, and patterns;
  • The different types of FDI and how they impact development;
  • The link with Trade;
  • Why firms internationalize, what their investment process is like;
  • What changes in a Fragile, Conflict, or Violence contexts.

 Presenters

  • Mr. Armando Heilbron, Senior Investment Promotion Specialist, World Bank Group
  • Mr. Jacob Dencik, Senior Management Consultant, IBM - Plant Location International (PLI)
  • Ms. Heba Shams, Lead Private Sector Specialist, World Bank Group

11:00 – 11:30

Q&A

11:30 – 11:45

Coffee Break

11:45 – 12:45

Session 1.2. International Investment Agreements

International Investment Agreements (IIAs) have seen a surge in their numbers in recent years. This is a consequence of the fierce competition for FDI amongst countries. What is the relevance of these agreements for domestic investment policy? To what extent do IIAs contribute to attract and retain investment?  What should a government official know about these agreements? How do trade and investment regulation interact? This session aims to cover the following:

  • Origins, policy rationale, and evolution of the different types of International Investment Agreements (IIAs)
  • World Trade Organization (WTO), Preferential Trade Agreements (PTAs), Bilateral Investment Treaties (BITs)
  • The new paradigms in investment rule-making: from BITs to new generation IIAs 
  • The impact of these agreements and domestic reform

Presenters:

  • Mr. Eric H. Leroux, Professor of Law, Panamerican University, E.H. Leroux Associates

 

12:45 – 13:00

Q&A

13:00 – 13:45

Lunch

 

Panel 2. Easing the Way for Investment

 

13:45 – 14:45

Session 2.1. Overcoming Barriers to Entry

Many developing countries limit the entry of FDI into certain sectors, including services sectors, or maintain complex work permit and visa systems that inhibit movement of skilled labor. The underlying policy objective for such measures is often understandable, such as to protect national strategic interests, to protect SMEs from competition, or to “reserve” certain types of occupations for nationals. The challenge often surfaces when these policies become a barrier to FDI and longer-term economic development objectives of FDI host countries. Policy-makers increasingly realize the trade-offs of such measures, especially in the case of services FDI, which can provide important productivity boost to manufacturing sectors, or in the case of visas and work permits, which, if efficiently and carefully designed and administered, can bring in new talent and know-how transfer to domestic firms. This session will:

  • discuss cutting edge topics in investor entry and related legal or administrative barriers commonly seen, and
  • present examples of policies and reform options in this space that can merge both, short-term political and long-term economic development objectives

Presenters:

  • Ms. Barbara Kotschwar, Senior Investment Policy Specialist (Lead for Investment Entry work stream), World Bank Group
  • Ms. Heba Shams, Lead Private Sector Specialist, World Bank Group
  • Mr. Aminou Akadiri, Executive Director, Federation of West African Chambers of Commerce and Industry (FEWACCI)

14:45 – 15:00

Coffee Break

15:00 – 16:00

Session 2.2. Improving the Business Environment

A favorable business environment is essential to create the opportunities and incentives for domestic and international firm entry, growth and competitiveness. The business environment should be predictable and transparent, making it simple and inexpensive for businesses to comply with regulation while protecting public goods such as the environment, health and safety. Streamlining and improving regulatory design and delivery lowers compliance costs for businesses, which eliminates constraints to growth for existing companies and also attracts new investment. Clear and predictable business environments improve companies’ competitiveness and thus better connect domestic investments to global markets, providing growth and jobs to host countries. Moreover, by enhancing regulatory design with tools that increase transparency and eliminate unnecessary administrative tasks, governments can reduce the costs of monitoring compliance and save scarce public resources for further investments in productivity. This session will include an overview of BE reforms and practical examples:

  • What is the Business Environment?
  • Why do BE reforms matter to businesses?
  • What are the WBG BE tools?
  • What impacts can governments expect when implementing BE reforms?
  • Case study on successful BE reforms (TBD) 

Presenters:

  • Ms. Wafa M. Aranki, Senior Private Sector Specialist, World Bank Group
  • Ms. Yewande Sadiku, CEO, Nigeria Investment Promotion Commission (TBC)

16:00 – 16:45

Q&A

Day 2, Wednesday 7 June 2017

Time

Session

Panel 3. Integrated Regions for Better Trade and Investment

 

09:00 – 10:30

Session 3.1. Regional Integration and Tracking Reforms (Regional Scorecards)

Regional Scorecards are a way for Partner States to demonstrate and operationalize their commitment to regional integration obligations, to better implement their commitments and to work together to advance common goals. One example is the EAC Common Market Scorecard (CMS), which Partner States’ compliance with their Common Market Protocol commitments in selected areas. Two EAC Scorecards have helped EAC countries work together to increase compliance by all at the national and regional level. The draft ECOWAS Investment Climate Scorecard seeks to achieve compatible ends in light of the Revised ECOWAS Treaty. The aim of the Scorecard process is to facilitate policy dialogue by identifying good practices, track reforms, facilitate sharing of reform experiences, and enable research and analysis on the links between reforms in measured areas and desired investment outcomes. This helps Partner States comply with their assumed obligations. In addition to being an element of ‘good practice’ in policy making, monitoring the regional integration process can contribute to the development of regional trade and promotion of economic growth. This session will:

  • Examine the process, design and implementation of the EAC Scorecard and set out lessons learned;
  • Look at other regional tracking mechanisms;
  • Present the key features of the draft ECOWAS Investment Climate Scorecard  

Moderator: 

  • Ms. Barbara Kotschwar, Senior Investment Policy Specialist (IPP Lead for Regional Integration work stream), World Bank Group

Presenters:

  • Ms. Christine Mutimura-Wekesa, Senior Legal Officer, East African Community (EAC) Secretariat
  • Ms. Jean Lubega-Kyazze, Senior Private Sector Specialist, World Bank Group, Project Lead for EAC Scorecard
  • Ms. Agatha Nderitu, Senior Consultant, Sanaa Consulting, author of Services Chapter
  • Ms Rosette Comfort Kania, Senior Legal Consultant, author of Capital Chapter
  • Mr. Armando E. Heilbron, Senior Investment Promotion Specialist, World Bank Group

10:30 – 11:00

Q&A

11:00 – 11:15

Coffee Break

Panel 4. Attracting Strategic Investments

11:15 – 12:15

Session 4.1. Investment Promotion Fundamentals

Investment promotion nowadays is highly competitive. Many developing countries face significant challenges in attracting, establishing, retaining, and expanding FDI, or linking it with domestic investment, despite having achieved significant reforms. This is partly due to a lack of visibility of the location vis-a-vis investors, information asymmetries, and coordination failures. Investment Promotion that effectively deals with these issues lays on 3 pillars: strategic, institutions, and service. This session will discuss:

  • Hear directly from an investor in the ECOWAS region and from an investment site selection consultant advising multinationals on where to invest abroad, on what issues they face when making investment decisions and what they would appreciate from the IPAs
  • Present three fundamental pillars of investment promotion: strategy, institutions and services
  • What changes in a Fragile, Conflict, or Violence context

Presenters:

  • Mr. Jacob Dencik, Senior Management Consultant, IBM - Plant Location International (PLI)
  • Mr. Prakash Kanth, Senior Vice President, OLAM Nigeria
  • Mr. Armando E. Heilbron, Senior Investment Promotion Specialist, World Bank Group
  • Ms. Heba Shams, Lead Private Sector Specialist, World Bank Group

12:15 – 12:30

Q&A

12:30 – 13:15

Lunch

13:15 – 14:15

Session 4.2. Defining an Investment Promotion Strategy

IPAs should not go about promoting generically all sectors to all types and sources of investment. IPAs must align their efforts with the national development strategy and goals (such as diversification, higher GVC integration, technology transfer, job creation, etc.), and make decisions about how to utilize their scarce resources efficiently and effectively to achieve those goals. This requires a strong understanding of the locations’ value proposition to investors, having a clear, strategic focus on sectors and even segments and activities of interest to both location and investors, identifying target markets and investors, and laying out a plan to provide the relevant services to them. This session will discuss:

  • Strategic alignment
  • The strategic focus for countries looking to attract investment
  • The different policies being used by countries to achieve economic diversification and the production of higher value added goods and services
  • The Sector scan tool, which helps governments select, qualify and promote the sectors that have the potential to attract strategic investment while serving the country’s diversification objectives
  • What changes in a Fragile, Conflict, or Violence context?

Presenters:

  • Mr. Armando Heilbron, Senior Investment Promotion Specialist, World Bank Group
  • Mr. Andrew Thorburn, Sr. Investment Consultant, World Bank Group
  • Mr. Moussa Toure, CEO, API Mali

14:15 – 14:30

Q&A

14:30 – 15:30

 

Session 4.3. Setting Up Investment Promotion Agencies (IPAs)

Public institutions dedicated to the attraction of FDI and the full extraction of its benefits do so, in part, by mitigating two types of market and government failures. Information asymmetries and coordination failures lead to suboptimal allocation of capital, when an investor chooses a suboptimal investment location because the optimal location was not known or adequately understood. An established investor may forgo the use of local inputs, labor, and business partnerships, for the same reasons. It is therefore crucial that locations adopt a strong institutional framework, and that a specialized IPA be optimally designed, set up, staffed and managed for success. This session will discuss:

  • Key characteristics for a strong IPA (or IPA function)
    • Foundations: mandates, budgets and funding, and governance
    • Operations: structure, systems, staff, partnerships, M&E
  • Establishing collaboration mechanisms for promotion
  • What changes in a Fragile, Conflict, or Violence contexts

Presenters:

  • Mr. Andrew Thorburn, Sr. Investment Consultant, World Bank Group
  • Ms. Racquel Moses, former CEO of InvesTT (Trinidad and Tobago Investment Promotion Agency)
  • Ms. Yewande Sadiku, CEO, Nigeria Investment Promotion Commission

15:30 – 15:45

Q&A

15:45 – 16:00

Coffee Break

16:00 – 17:00

Session 4.4. Delivering Quality Services to Investor

Governments that have been most successful at attracting investment have typically been characterized by offering outstanding services to investors. These services follow the investment project’s lifecycle, from attraction to entry and establishment, to operations, to expansion and linkages and spillovers. These services are crucial and their absence may result in the investors not considering the country at all, dropping out during exploration or establishment phases, exiting too early or operating with no positive effects on the national economy. IPAs help convert potential investors into existing ones and keep the latter when they provide inquiring and established investors with needed information and assistance, when they use research and salesmanship to identify and proactively approach the investors most likely to be attracted by the locations’ value propositions, and when they proactively draw investor attention to mutually beneficial opportunities presented by linkages to domestic businesses and workers. This session will discuss:

  • The 4x4 matrix of investor services
  • Programs that package services for a country to offer investors at different stages and consistent with the strategy
  • What changes in a Fragile, Conflict, or Violence context?

Presenters:

  • Ms. Lina Sawaqed, Private Sector Consultant, World Bank Group
  • Ms. Racquel Moses, former CEO of InvesTT (Trinidad and Tobago Investment Promotion Agency)
  • Mr. Gabriel Curtis, CEO, Guinea Private Investment Promotion Agency (APIP-Guinée)

17:00 – 17:15

Q&A


Day 3, Thursday 8 June 2017

Time

Session

Panel 5. Incentives

09:00 – 11:00

Session 5.1. Investment Incentives: The Case for Transparency

Investment incentives are a commonly used tool for both investment promotion and to support domestic firms. Yet, global experience shows that their effectiveness is often limited, and points to significant costs in terms of foregone revenue, economic distortions, and potential abuse by investors. Transparency in the design and administration of incentives is therefore crucial to better understand the fiscal impact and mitigate indirect costs of incentives. While the policy challenges associated with transparency and incentives are significant, there is a lot that countries can do both unilaterally and through regional cooperation to make progress in this area, and several principles of good practice have emerged globally. This session will include:

  • A presentation on a background note prepared by the World Bank on the use of incentives in the ECOWAS region and the importance of transparency in the design and administration of incentives
  • A facilitated panel discussion with representatives from the region speaking about their countries’ challenges, achievements, and priorities for reform with regard to incentives, as well as practitioners and experts from beyond the region presenting reforms experiences and international good practices to enhance incentives’ transparency

Presenters:

  • Mr. Jacob Dencik, Senior Management Consultant, IBM - Plant Location International (PLI)
  • Ms. Hania Kronfol, Investment Policy Specialist, World Bank Group
  • Mr. Marc Séguin, Senior Tax Consultant, World Bank Group
  • Mr. Gabriel Curtis, CEO, Guinea Private Investment Promotion Agency (APIP-Guinée)
  • Mr. Yassin Sabha, Investment Consultant, World Bank Group

11:00 – 11:30

Q&A

11:30 – 11:45

Coffee Break

Panel 6. Retaining Investment

11:45 – 12:45

Session 6.1. Investor Aftercare

Existing investors are typically one of the biggest sources of new investment (“reinvestment”), however, they may not find a conducive environment to expand or, even worse, may run into difficulties that may lead them to divest from a given location. Encouraging existing investors to not only remain in the country but to also expand and diversify their operations requires proactively reaching out to them. Similar to targeting, aftercare must focus on the most strategic investors in pre-selected sectors and segments. This session will cover:

  • How countries can track strategic established investors
  • Understanding sectors’ gaps and opportunities
  • Developing value propositions and strategic plans for new reinvestment opportunities
  • It will also touch on linking strategic FDI with domestic suppliers
  • What changes in a Fragile, Conflict, or Violence context?

Presenters:

  • Mr. Prakash Kanth, Senior Vice President, OLAM Nigeria
  • Mr. Gabriel Curtis, CEO, Guinea Private Investment Promotion Agency (APIP-Guinée)
  • Mr. Andrew Thorburn, Sr. Investment Consultant, World Bank Group
  • Mr. Armando Heilbron, Senior Investment Promotion Specialist, World Bank Group

12:45 – 13:15

Q&A

13:15 – 14:00

Lunch

14:00 – 15:00

Session 6.2. Investment Protection / Retention

Retaining and growing investment in the host country is as critical as attracting new investment. However, countries’ ability to retain investment can be negatively impacted by political risk, which among others includes: instances of unlawful expropriation, breach of contract, and arbitrary or non-transparent Government conduct. The latest data shows a clear link between political risk and FDI. For example, more than a quarter of investors investing in developing countries and economies in transition cancelled planned investment expansions or withdrew their investment altogether due to political risk. This session will discuss:

  • How public agencies’ behavior can generate risk of investment loss and what governments can do in order to tackle this challenge
  • The relationship between investment retention and expansion and international investment agreements
  • The practical mechanisms and tools available to governments to make their interaction with investors more coherent
  • Examples of countries that have managed to establish successful mechanisms to address investor grievances before they escalate into full-blown disputes
  • Protecting and retaining investment in conflict and fragile contexts.

Presenters:

  • Mr. Marc Reichel, Senior Legal Consultant, World Bank Group
  • Ms. Heba Shams, Lead Private Sector Specialist, World Bank Group

15:00 – 15:30

Q&A

15:30 – 16:00

Final discussion / closing remarks

The Improved Business and Investment Climate in West Africa Project is a four-year initiative that was launched in November 2014. The Project is funded by the European Union and seeks to support the ECOWAS Commission and the ECOWAS Member States to remove national investment constraints/barriers and to promote the regional expansion of cross-border investments. The Project is implemented by the World Bank Group which is providing technical assistance and working in collaboration with the ECOWAS Commission, the Member States, and private sector business associations.

To find out more, download the project brochure:

Details
  • Date: June 6-8, 2017
  • Location: Intercontinental Hotel, Lagos, Nigeria
  • CONTACT: Obiajulu Ihonor
  • oihonor@ifc.org