Tag Archives: Foreign Direct Investments

Diaspora investing for sustainability?

Picture credits: UNCTAD.

The UNCTAD World Investment Forum is taking place in Nairobi, Kenya – gathering about 6000 trade and investment professionals from both private and public sectors.

For many countries, diaspora and expatriate networks are essential. This is not just the case for developing countries. Did you know that France, for example, is a top-5 recipient of remittances (with India, China, Philippines, Mexico) ? France receives more money transfers from its expatriates and migrants, than its total outflow of remittances plus its international aid for Africa together. Remittances have become as essential to the French State budget as they are for many countries of the South.

However, for developing countries, the diaspora is not just essential but often vital: remittances fuel consumption, but also contribute to education and health. What about productive investments and funding for infrastructure projects ? What about startups financing ?

We’ve asked #WIF2016 #UNCTAD14 participants on Twitter their view on how best  diasporas could invest in their home country to contribute to sustainable development goals (SDGs). Those are the results:

2016_FDIMagnet_UNCTAD14

Foreign Direct Investment (FDI) comes first.

How easy is it for a country to attract Foreign Direct Investment from (or via) its diaspora? Well, it’s not easy.

But we’ve thought it through and made it easier for Investment Promotion Agencies to reach out to their diaspora and expatriate networks.We use the ‘big data’ to map international business networks and we design targeted approach to diaspora engagement (by geography, by sector), combining real world events and digital communication.

Please, inquire if you think this could useful for your country, your region or your city.

About NamSor

NamSor™ Applied Onomastics is a European vendor of sociolinguistics software (NamSor sorts names). NamSor mission is to help understand international flows of money, ideas and people.
Reach us at: contact@namsor.com

About FDI Magnet

FDI Magnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services.
Follow @FDIMagnet, join the LinkedIn group

 

Leave a comment

Filed under FDI Magnet, General

AEB celebrates 20 years of FDI in Russia

The Association of European Businesses (AEB) gathers the largest European foreign investors in Russia and celebrates its 20 years of existence on Thursday 24th September. The AEB was established in 1995 […] to represent and promote the interests of European companies conducting business in and with the Russian Federation. It is chaired by Philippe Pegorier, also President of Alstom in Russia.
The AEB is also the source of independent Russia statistics and industry analysis, and the main source for sales statistics of the Russian automotive market.

201509_FDIMagnet_Russia_Automotive

Ms Lara Kaute used information published by the AEB, among other sources, to write a master thesis about “Perspectives Of Foreign Direct Investments Into The Russian Automotive Sector In The Current Economic And Political Crisis”. We invited Ms Lara Kaute to share some of her work in a guest post.

Perspectives of FDI into the Russian automotive sector

The economic, financial and political crisis that broke out in Russia in 2014 has contradictory impacts on foreign direct investments. On the one hand, the Russian government strengthened its “import substitution” policy, currency risks made imports risky if not unprofitable, and the fall of the ruble made Russian assets and labour force much cheaper. All this should stimulate foreign businesses to localize their Russia-targeted production in Russia, i.e. to increase the inflow of foreign direct investments into Russia. On the other hand, Western sanctions against Russia restrain various kinds of FDI to the Russian market. Western banks strongly limit their Russia-related activities, which in turn limits the inflow of FDI to Russia.

The automotive sector was the most successful in attracting FDI to Russia until 2013 because of a strong growth in consumer demand from the early 2000’s and policies of the Russian government giving strong advantages to foreign carmakers partly localising their production in the country. Nowadays, about 70% of car manufacturing in Russia is done by foreign companies, which makes foreign involvement key to this sector.

But the automotive industry is also the one which suffers most from the current economic and financial crisis in Russia, with sales of some companies like PSA Peugeot Citroën or Ford about 35% lower in 2014 compared to 2013. The devaluation of the ruble lowered the purchasing power of the population and made imports of tier parts to Russia from abroad much more expensive. The increase in interest rates by the Russian central bank in order to stop the fall of the ruble made new consumption credits unaffordable to Russian consumers, it also made refinancing most difficult to car manufacturers and tier parts suppliers, triggering critical financial situations and defaults. The consequence of both the fall of the ruble and the increase in interest rates is that Russian consumers can afford cars only at lower prices, while car manufacturers face a stringent need to increase their prices, which in turn has a very negative impact on sales volumes. According to Association of European Businesses’ prognosis, only 50% of Russian car production capacities will be used in 2015, i.e. around 1.5 million cars will be produced and sold.

Nevertheless, this study shows that only very few foreign car manufacturers decide to leave Russia. It is believed that the crisis will not last longer than 2 to 3 years and that on a longer term perspective the Russian market stays an attractive one. As far as FDI are concerned, the results of the study are as follows:

– An increase of production capacities is very unlikely to happen in the 2-3 coming years, except for Chinese manufacturers who probably bet on an increase in the low-cost part of the Russian car market.

– An increase in localisation of production activities stays a crucial objective for any car manufacturer planning to stay in Russia: it will take place even though it is a very difficult task.

– Financial support to Russian subsidiaries of foreign companies is likely for any OEM staying in Russia.

– A significant decrease of FDI inflows for a given period and temporary stops of production are the fate of most vulnerable OEMs on the Russian market (with the smallest degrees of localization and less adapted marketing strategies).

– Outflows of FDI (i.e. leaving the Russian market) are a strategic decision of very few companies (e.g. GM)

In order to get the full-fledged analysis, please contact Lara Kaute at lara.kaute(a)sciencespo.fr.

About Lara Kaute,

2015_LaraK Lara graduated in June 2015 from a double master’s degree in Sciences Po Paris and in MGIMO University, in Finance & Strategy and International Relations. Lara is fluent in Russian, French, German and English and she also has a bachelor diploma in Natural Sciences focus Chemistry. Lara’s master thesis about “Perspectives Of Foreign Direct Investments To The Russian Automotive Sector In The Current Political And Economic Crisis” was granted the highest mark among her peers by MGIMO University. With a successful working experience in Air Liquide Russia’s business development unit, she would like to dedicate the coming years of her carrier to developing European businesses in Russia. Lara can be reached at lara.kaute(a)sciencespo.fr or via Lara on LinkedIn.

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)
–   Smart Investors Targeting & CRM
–   FDI Targeted Communication

We leverage the ‘big data’ and large commercial databases covering all countries/regions, including the Russian Federation. Follow @FDIMagnet, join the LinkedIn group or email us at contact@fdimagnet.com

Leave a comment

Filed under FDI Magnet, General

Kenya #DiasporaConference2015 to discuss Diaspora in business and investment

Today, Diaspora in Business and Investment will be at the very center of Kenyan #DiasporaConference2015 – gathering ~600 participants in Nairobi Windsor Golf Club, Kenya.

So what’s the potential? Let’s look at innovation for example. We used NamSor technology, to recognize in AngelList or CrunchBase -the two reference databases on the global startup ecosystem- the full potential of Kenyan Diaspora to boost the startup ecosystem in Kenya. Please RT if you like our infographics

This potential is not just in the #digital world, its in specific sectors too such as the Health sector. In one US state alone, there are about 25k registered health professionals of the Kenyan Diaspora : Nurses, Medical Doctors, Pharmacists – but also experts in various fields. Read our full presentation on the potential of HomeComing for Africa, Kenya specifics start slide 6:

One major question is how to redirect some of the 1.43bn remitted by the Kenyan Diaspora in 2014 to job-creating Foreign Direct Investments, Innovation incubators and start-ups.

We think we can help:-) we’ve done it, it works! We wish the best success to this conference today. On twitter follow ‏@CapitalFM_kenya for a live stream.

Further information:

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)

–   Smart Investors Targeting & CRM

–   FDI Targeted Communication

Follow @FDIMagnet, join the LinkedIn group or email us at contact@fdimagnet.com

Leave a comment

Filed under FDI Magnet, General

Diasporas, a region’s best ambassadors for FDI, Innovation, Tourism

Richard Bruton, Ireland ‎Minister for Jobs, Enterprise and Innovation, is in Paris today to meet with Emmanuel Macron, France Minister for Economy, Industry and Digital to discuss the jobs market.

In today’s French Newspaper LeMonde.fr, you’ll find two articles discussing Ireland’s restored growth, the first one co-written by NamSor inventor Elian Carsenat,

No doubt, Mr Macron will be curious of Ireland’s success in attracting so many US corporates and startups to Dublin, as well as so many talents (including from France). It’s not just the fundamentals : networking with the Irish Diaspora abroad and with foreigners in Ireland play a critical part. Digital networking (using LinkedIn, Twitter and the likes) is also taken seriously. You’ll find Ireland’s freshly released Diaspora strategy document below.

Global Irish: Ireland’s Diaspora Policy is available online in English and Irish. Global Irish is the first clear statement of Government policy on the diaspora.  It defines the Government’s role to both drive and foster diaspora engagement and sets out a number of actions to achieve our vision of a vibrant, diverse global Irish community, connected to Ireland and to each other. You may also wish to have a look at the new Global Irish website

Read further

The #FrenchTech is at its best at #SXSW

StartupBRICS, the blog tank of innovation in the emerging market, gave a talk in Austin on their amazing experience #TECHAfrique, Innovation & Startup Tour in Africa and announced live on SXSW Interactive stage the launch of diasruption.co

About NamSor

NamSor™ Applied Onomastics is a European designer of name recognition software. NamSor is committed to promote diversity and equal opportunity. NamSor launched NamSor Gender API, a free API to extract gender from personal names and NamSor Origin API. We believe NamSor API Key can help unlock the value of diversity worldwide. http://www.namsor.com

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)

–   Smart Investors Targeting & CRM

–   FDI Targeted Communication

Follow @FDIMagnet, join the LinkedIn group or email us at contact@fdimagnet.com

Leave a comment

Filed under FDI Magnet, General

After BusinessFrance, France launches AfricaFrance

France took the bold step of naming yet an other international business initiative with an English name: AfricaFrance.

It doesn’t mean France is about to ditch the Francophonie, but it could mean that it takes a pragmatic approach to English language being the language for business. It could also indicate that France business community, represented by MEDEF International, will be more proactive to invest beyond Françafrique in English-speaking African countries currently driving growth in Africa. The project takes the form of a foundation, AfricaFrance, headed by Lionel ZINSOU and endorsed by the French Ministry of Foreign Affairs.

Fernand Braudel, in his book a Grammar of Civilizations, mentioned the “linguistic joke played on Black Africa by the colonization: instead of gaining one international common language, it got two”. The map below, prepared using NamSor technology from a large database of company directors in Africa, shows that the linguistic divide is also very current in business and Foreign Direct Investments (FDI).

2015_FDIMagnet_AfricaFranceA challenge for the French Ministry of Foreign Affairs will be to promote this new brand on traditional and social media, as currently searching for AfricaFrance on Google returns totally orthogonal results, compared to the message the Quai d’Orsay would like to convey.

AfricaFrance was launched this morning very much as a ‘top-down’ approach, when the United-States and the United-Kingdom have built successful bottom-up approaches in recent years, directed towards the local elites in Africa or the global African Diasporas.

Will this particular initiative encounter a more durable success than last year event ‘African Forum – 100 innovations for sustainable development‘, which failed to deliver practical results? How will AfricaFrance maintain and gain traction once the African leaders are back in their home country?

Please RT if you liked this post

Further reading:

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)

–   Smart Investors Targeting & CRM

–   FDI Targeted Communication

Follow @FDIMagnet, join the LinkedIn group or email us at contact@fdimagnet.com

Leave a comment

Filed under FDI Magnet, General

Business France, the new organization to turn France into a FDI Magnet

[Happy new year! cast your vote in our playful quizz #BusinessFrance logo design contest]

Today, in French business newspaper Les Echos, the name of the new organization headed by Muriel Pénicaud resulting from the merger of UbiFrance and AFII (InvestInFrance) was announced: Business France.

InvestInFrance capabilities had been almost frozen to two years, awaiting for the new organization to be finalized – while the country unemployment rate kept increasing to 10.5%. Inbound FDI to France decreased strongly in 2013, while major French companies kept outsourcing more and more services to low wage countries. In the old organization, InvestInFrance would measure new greenfield investments to France but not the impact of closing down existing investments, or the effect of major outsourcing deals.

One of the first tasks of the new entity will be to launch a communication campaign « Creative France » to promote the ideas of entrepreneurship, innovation and creativity.

2014_FDIMagnet_Top_AngelList_InvestPlaces

France is among top European ecosystems for Startups

The new #CreativeFrance campaign will complement the current « FrenchTech » and « FrenchTouch » initiatives as well as the new country branding campaign .

Do you think France should have a unified Country Branding strategy? If so, RT:)

Further reading

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)

–   Smart Investors Targeting & CRM

–   FDI Targeted Communication

Follow @FDIMagnet, join the LinkedIn group or email us at contact@fdimagnet.com

Leave a comment

Filed under General

UNCTAD WIF14 – Investing in Sustainable Development

The fourth version of the World Investment Forum, organized by @UNCTAD, was held in Geneva with over 3,000 participants from 150 countries. The fourth version of this event gathered high-level decision makers from the public sector, academia, and investment promotion agencies, interested on how foreign direct investment can reach a sustainable path. The city of Lima, Peru, is already in preparations to host the fifth version, which will be held in 2016.

The forum had a considerable participation of investment promotion agencies, particularly from Africa, Eastern Europe and Latin America. With over 300 speakers, the agenda included 50 different sessions in which participants had the opportunity to exchange ideas on multiple topics.  Among those, it is important to highlight agricultural investment, regional integration, international investment agreements, and gender equality.

An important debate was held with world leaders as to how close funding gaps in infrastructure and climate change adaptation. Some of the speakers called the attention on the fact that the main issue is not on a lack of resources for infrastructure, but on “lack of adequately packaged or large enough projects”, as stated by UNCTAD Secretary-General, Mr. Mukhisa Kituyi. Additionally, UN’s counselor to the Millennium Development Goals – MDGs, Mr. Jeffrey Sachs, stated that “long-term thinking and complex solutions” must be kept in mind when speaking about turnkey projects.

During the event UNCTAD launched the Investment Guides – iGuides, as a way for investors to have updated, comparable and centralized data on their target destinations.  Information such as business costs, key procedures and laws are included on the first iGuides that were launched (Benin, Bhutan, Burkina Faso, Burundi, Comoros, East African Community, Ethiopia, Kenya, Lao, Mali, Morocco, Mozambique, Nepal, Rwanda, Uganda, Uzbekistan, Zambia).

The way in which regions develop their investment strategy is largely influenced by endogenous and exogenous actors.  Civil society and public leadership are part of the internal ones, and Diasporas are part of the exogenous actors. Numerous countries still rely on a great extent on their Diaspora for investment, not only in remittances but also as a FDI source.  This trend is followed by both emerging and developed countries, crisis-stricken Europe included: Ireland, Spain, among others.  This process is commonly referred to as Diaspora Direct Investments, and has become a new source for seeking capital. Around 215 million people live away from their home country and, if well managed, can help national and regional investment promotion agencies identify and influence the decision of potential investors. This policy has been successfully implemented by several countries. Ireland for example targets both both diaspora-owned business and companies employing influential fellows of the diaspora, acting as connectors.

A special session was held on the role transnational corporations can play in women empowerment and gender equality, moderated by Maria Cattaui-Livanos, former Secretary-General of the International Chamber of Commerce with participation of Phumzile Mlambo-Ngcuka, Executive Director, @UNWomen. Elian Carsenat of @FDIMagnet shared with Ms Mlambo-Ngcuka the latest Gender Gap Grader infographics on startups and access to financing.

Gender Gap Grader for WIF

Open data initiatives such as Gender Gap Grader can play a role to empower women, trigger changes. Even if closing the gender gap in investment will take time, women could have a more decisive role in attracting FDI and VC/Angels money to foster innovation ecosystems in places where it is most needed. What it takes is combining the activation of Women’s Networks with Diaspora Direct Investment: reaching out to influential women in the Diaspora to attract investments, expertise and help make connections.
About Karina Azar,

3bf65ca

In her five years career, Karina developed strong expertise on Foreign Direct Investment as Promotion Manager and Advisor to companies considering relocation in Colombia.  On 2013 she was ranked on Neashore Americas Power 50 as one of the most influential executives in the outsourcing field.  She is currently researching on Sustainable Development with the Sorbonne University in Paris and independant consultant on FDI matters.  Karina can be reached at karinaazarb@gmail.com or via LinkedIn.

 

About FDIMagnet,

FDIMagnet is NamSor™ offering for Investment Promotion. We use our unique data mining software to offer differentiated Foreign Direct Investment (FDI) services:

–   Diaspora Direct Investments (DDI)

–   Smart Investors Targeting & CRM

–   FDI Targeted Communication

Follow @FDIMagnet or email us at contact@fdimagnet.com

Leave a comment

Filed under FDI Magnet, General

Data mining the global start-ups and venture capital ecosystem

AngelList is a platform for startups—started by the dudes who do Venture Hacks.’ It lists over 650k profiles of entrepreneurs, start-up professionals, VCs and business angels – globally. We’re preparing an analysis of the gender gap in the global startup ecosystem and access to financing, which will be disclosed just before the Women’s Forum which takes place soon in Deauville, France. AngelList, as source, has a strong bias towards the United-States. However it’s interesting to look at which places, which markets attract most interest from global investors. In the chart below, we only show the first destination for a given country (this is either the country name, or a main city). 2014_FDIMagnet_Top_AngelList_InvestPlaces Many places have a vibrant start-up ecosystem and don’t show up in this board. Many countries still need to reach out to their Diaspora in the United-States and Europe to build a well financed start-up ecosystem, to create global networks of experts.

Further reading

About NamSor

NamSor™ Applied Onomastics is a European vendor of Name Recognition Software (NamSor sorts names). NamSor mission is to help understand international flows of money, ideas and people.

NamSor launched FDIMagnet,  a consulting offering to help Investment Promotion Agencies and High-Tech Clusters leverage a Diaspora to connect with business and scientific communities abroad. NamSor is committed to promote diversity and equal opportunity.

We support the @GenderGapGrader initiative.

Leave a comment

Filed under FDI Magnet, General

Revealing the Irish, French, Indonesian digital diasporas

An Irish Times @GenerationEmigration reblog

NamSor technology has mapped the location of Irish-owned Twitter accounts around the world.
To access the interactive map, click here: http://cdb.io/1h8kTDG

20140101_TwitterGEOnomastics_IrishTimes_1

Elian Carsenat and Michel Fortin

Before Christmas, we came to Ireland to present NamSor, a piece of name recognition software which uncovered the Irish ‘digital diaspora’ for the first time. This interactive world map of the Irish, French and Indonesian e-Diasporas was produced using Twitter account data.

Twitter is an interesting data source because about 3 per cent of Twitter accounts opt-in to show their Tweet location (using GPS from a smartphone) and can be visualised on a map. We were interested to visualise the Irish digital diaspora, not just in the US and the UK, but globally. Our assumption was that the Irish themselves are familiar with the history and sociology of the Irish diaspora in the US and the UK (and such organisations like IDA Ireland and Tourism Ireland have been successful in leveraging those), but what about Latin America, Eastern Europe, the Middle East and Asia? It is interesting to see how large and dispersed the Irish diaspora is in the US, and how small and concentrated it is in populous Indonesia.

20140101_TwitterGEOnomastics_IrishTimes_2

The scientific jargon for this special data mining is applied onomastics. We’ve worked with many different databases before, using onomastics for a specific purpose. For example, to help the Lithuanian Investment Promotion Agency understand the sociology of its diaspora and attract foreign direct investments (FDI), we’ve data mined Factiva C&E, a large database of company directors worldwide. We’ve also analysed PubMed, a scientific database used by doctors and biotechnology researchers, to recognise where international talent flows in that competitive field.

We spent a lot of time in Dublin with Kingsley Aikins, chief executive of Diaspora Matters, who is well known internationally in the diaspora field and has worked with many other countries as well as Ireland.

He believes the product could be a real game changer in the diaspora field and could help answer the perennial question all countries ask about their diasporas – who are they, where are they and what are they doing. He believes that we now live in a networked age and the key to success of diaspora engagement is in building global networks. Namsor will help find these people and enable new diaspora networks to be developed.

He also referred to the emerging global war for talent and how diasporas are going to be critically important sources of talent. Countries who know and keep in touch with their diasporas will have a competitive advantage. This will apply not only to those wishing to return to their home country but also to those wishing to be involved and help with DDI (Diaspora Direct Investment). Malaysia, Vietnam and Indonesia have already introduced initiatives in these areas.

We were impressed with the success of the Gathering, bringing several hundred thousand people to Ireland. This is an innovative initiative and must have strengthened the bonds between the Irish diaspora and Ireland.

There may not be such thing as a ‘French diaspora’, but we see more and more French people going abroad, especially the young and talented seeking an international experience. We’ve seen a lot of them in Dublin! Our impression is that the French abroad don’t really know or help each other as effectively as in other cultures, such as the Irish. French diplomats, large companies, entrepreneurs established abroad, exporting SMEs, professors and students all seem to live in separate worlds. France could learn a lot from what Ireland is doing.

NamSor Applied Onomastics is a European vendor of name recognition software (NamSor sorts names), which aims to help understand international flows of money, ideas and people. namsor.com

Diaspora Matters is a consultancy company based in Dublin advising governments, companies, organisations and individuals on how to develop strategies and programmes to connect with their Diasporas. diasporamatters.com

This article was inspired by and original article published in onomastics.co.uk

Leave a comment

Filed under EthnoViz, General

NamSor and @FDIMagnet wish you a Happy New Year 2015!

Happy New Year!

About : self organized FDI related Twitter names ; dataviz done using GEPHI.

Leave a comment

Filed under General