Accelerator for Investments in the Mediterranean AIM

Transcription

1 Accelerator for Investments in the Mediterranean AIM The ANIMA Consortium Seminar on Investment Brussels, 4 July 2005

2 ANIMA was a test but limited Need to go up a gear (accelerate) The project stakeholders have decided to be pro-active This discussion document summarises their preliminary ideas The initiative is open to all potentially interested parties (IPAs, multilaterals, networks, private sector) It is therefore necessary to explain the rules of the game AIM higher interesting The ANIMA proposal for the future : AIM Accelerator for Investments in the Mediterranean Med IPAs Perimeter DI (Morocco) GAFI (Egypt) Open to others EU IPAs Invest in France ICE CzechInvest MaltaEntreprise IVEX (Valencia) Marseille-Provence Networks ASCAME, UMCE- UNIMED, WAIPA? July 2005 ANIMA

3 The issue MEDA does not fulfill its potential to attract FDIs Combination of objective drawbacks, intermediate market, rather long response times and investor perception There are exceptions (energy, tourism, ICT, automotive, etc.) Intense need to attract labour-intensive and sustainable FDIs Successful investment promotion Requires long-term commitment Implies pro-active promotion approach (personal and direct selling is the key) Is not rocket science, but implies organisation, attention to detail, reactivity There are mutual benefits in working at MEDA level Size (market), facilitated access to investors, common learning curve, economies of scale (eg. in economic intelligence or sales force), image July 2005 ANIMA

4 The AIM vision: A 5-year plan to boost FDIs into MEDA Objectives To recover by 2010 normal FDI levels in the region (whatever the origin -not necessarily European) To seek co-investment on the two Mediterranean banks (a must if EU partners are to be mobilised) Pre-requisites «Product improvement» (attractiveness of MEDA via reforms, new investment schemes, novel initiatives) Ownership (acceptance of a multilateral co-operation scheme, staged transfer of responsibility to MEDA IPAs) Continued European involvement (EC, Govts., IPAs) and mobilisation of all possible public/private/national/multilateral allies July 2005 ANIMA

5 The AIM targets Targets Nb. of investment projects Investment amount 10bn 30bn Job creation - direct 25, ,000 -indirect 250,000 1,000,000 The adoption of such targets implies a strong political will They have to be refined Figures of course depend on definitions (minimum project size, sectors considered -eg. energy, distribution etc.) FDI statistics themselves are an area where major improvements and standardisation efforts are needed July 2005 ANIMA

6 Networking Strategy/Marketing Policy advocacy Capacity building Image building Promotion AIM, a 7-step approach Mobilise the forces interested in FDI development A network of networks Reinforce ANIMA s resource center A Euro-Med FDI think-tank Continue improving investment climate A reform watchdog Continue training and knowledge transfer A FDI academy Improve the industrial image of MEDA A regional image campaign Promote the Mediterranean site A front-office for investor first contact Project generation Develop FDI flows to the Euromed region An efficient sales force July 2005 ANIMA

7 Staffing and other costs A limited hub/core team is needed (15 people) Flexible, responsive, value-added & opportunist team Able to drive an ambitious/decentralised programme Out-sourcing of non essential functions Contractual relationship with partners (IPAs, networks) Quality standards Example of organisation for project detection (prospection) A prospection network is very costly (range of 4 to 10m/year) Presence needed in at least 5 EU capitals + US, Asia, Dubai Solutions considered: use of partners networks at marginal cost In ANIMA, logistics represent 50% of total expenses July 2005 ANIMA

8 Budget Means needed Comfortable : 4 to 5m per year (ANIMA: <2m per year) Realistic : 3m per year over 5 years ( ), or 15m 4 major sources (this is a draft, no commitment at this stage) European Commission : 35-45%, or 6 m Beneficiaries (MEDA countries) : 20-30%, or 3.75 m Multilaterals (EIB, WB group, UN ): 15-25%, or 3 m Private sector and other EU partners (agencies, governments, communities) : 10-20%, or 2.25 m Total 15m A high return, if successful Compare 15m costs and the impact of 30 bn FDI! July 2005 ANIMA

9 AIM regional level raises immediate questions AIM mandate All countries have their own national IPA and often regional IPAs What can be the AIM specific value added? All IPAs worldwide are competing for inward investments Will a co-operation policy provide mutual benefits? The responses = AIM is a non-exclusive, independent and fair partner AIM higher dealing with pre-competitive FDI search (hands-off approach) providing an additional value (joint modernisation/promotion) avoiding overlaps with IPA missions (subsidiarity) and/or activities of existing bodies (WAIPA, UNIDO, WB etc.) managed through adequate and efficient governing structures July 2005 ANIMA

10 Two types of AIM services As proposed by the ANIMA evaluation, AIM is flexible Co-existence of a common stream and customised services Room for plurilateral operations (reinforced co-operation between a group of countries or IPAs) Contributions may be in kind and financial Med IPAs financial contribution to the common stream could be paid through an annual membership fee Based on GDP (cf. Cyprus proposal) Complemented by EU and other resources So that contributions would be in an acceptable range IPAs contribution to the customised services could be paid per operation On the basis of a pluri-annual commitment (need to plan human resources) July 2005 ANIMA

11 Image & capacity building Project generation ANIMA Common stream All IPAs Contribution to costs 20 to 30% /membership Annual conference & investment summit Basic training AIM website /news Attractiveness scoreboard Promotion tools FDI observatory AIM resource center (general data & studies) AIM intranet Matrix of AIM services Customised services Interested IPAs Contribution to costs 30 to 50% /pay per operation Targeted training Technical assistance Country or sub-region image campaign Special events Demonstration projects Targetedpromotion Economic intelligence Pre-investm. data /offers Project detection & follow-up July 2005 ANIMA

12 Priorities: AIM vs. ANIMA July 2005 ANIMA

13 AIM organisation AIM higher The roof A high-level supervisory board Associating all bodies involved in FDIs The walls: a dedicated team Core team of 15 professionals Incl. secondments from Med IPAs Sales force (up to 10 experts abroad) The foundations A network with legal A sufficient budget status (eg. Association) ( 3m per year) Example: Plan Bleu A 5-year commitment Méditerranée July 2005 ANIMA

14 From ANIMA to AIM ANIMA Steering Committee Consortium Project Management Unit AIM General Assembly Board Executive team Members All Med IPAs EU IPAs Other partners Up to 8 IPAs Associated partners Experts Seconded staff Role Programme ownership Programme supervision Programme implementation Meetings Once a year Twice a year+ Weekly July 2005 ANIMA

15 Private sector involved via the AIM Club European, Mediterranean or world champions Siemens, Accor, Dragados, Orascom, British Gas, Renault, Microsoft Or supporters: companies interested in servicing new investors Banks, insurance, consultancy, audit, legal and fiscal advices, human resources, real estate, utilities, logistics etc. Role Contribute to the development of business & FDI in the Euro- Mediterranean region Act as an advisory board for the AIM initiative (concrete outputs) Provide the foreign investor s view on FDI government policies Create confidence within the investors community success stories Facilitate and accompany projects (SMEs, partners) Financial contribution to AIM In kind (joint forums, staff, advertising, equipment etc.) Donations (AIM Fund) Share experience and best practice with similar companies July 2005 ANIMA

16 Let s work together for future Euro-Med generations Accelerator for Investments in the Mediterranean AIM Coordination (French desk) Bénédict de Saint-Laurent AFII-Invest in France T: Mailto : bdsl@afii.fr July 2005 ANIMA