In a period marked by geopolitical tension, fragmented trade, high inflation and tightening financial conditions, the global foreign direct investment (FDI) flows are under pressure. For investment promotion agencies (IPAs), whose mandate depends on attracting international capital, this presents both a challenge and a moment for strategic reset.
To remain relevant and effective, IPAs must first shift their mindset. The era of passive promotion—where having a data-rich website and glossy brochures was enough—is firmly over. Today’s environment demands precision, agility and partnerships. Investors are increasingly discerning, risk-sensitive and impact-oriented. That means IPAs need to become solution providers, not just salespeople.
One of the most important moves IPAs can make is sharpening their sector focus. In uncertain times, capital concentrates in areas of perceived resilience — such as renewable energy, digital infrastructure, health, and advanced manufacturing. Rather than attempting to attract all investors, agencies should identify high-potential sectors that align with national strengths and global demand, and then build clear, investable pipelines within them. This also means preparing projects to a higher standard: well-costed, de-risked and supported by clear regulatory roadmaps.
Policy advocacy must also become core IPA business. In many countries, IPAs sit at the intersection of government and the private sector yet too often they act purely as intermediaries, not influencers. By collecting feedback from investors and translating it into actionable reforms, IPAs can help improve the operating environment and signal long-term stability. With regulatory uncertainty high on the list of investor concerns, even small improvements in transparency and permitting can make a big difference.
Next is partnerships. No IPA can do it alone, especially in resource-constrained environments. Collaborating with development finance institutions, chambers of commerce, accelerators and regional governments can expand reach and credibility. In particular, blended finance tools offer powerful ways to reduce perceived risk and draw in private capital; IPAs should not only understand these instruments but actively promote them.
Digitalisation is another key lever. IPAs must move beyond online promotion to deploy smart technologies that streamline investor onboarding, track performance and personalise investor services. A customer relationship management system that can flag follow-ups or identify when an investor is disengaging can be as critical as any pitch deck.
Finally, IPAs need to tell a clearer story. In a world of overlapping crises, investors want to know not just where to put their money, but why and how. Agencies that can frame their country’s offer within the global context — linking investment to resilience, regional supply chains, sustainability goals or technological ecosystems — will stand out.
Volatility may be the new normal, but with smart positioning, strong execution and investor-focused thinking, IPAs can still win. It’s not about waiting for global flows to recover; it’s about building the case to be first in line when they do.
