Pacific, African leaders urge investors rethink risk and reward

The session “Looking at the Glass Half Full – The Comparative Advantage of SIDS, LLDCs, and LDCs” moderated by Dushyant Thakor, Deputy Executive Director of World Association of Investment Promotion Agencies (WAIPA), underscored how new policy frameworks, digital inclusion, and sustainable resource management could help smaller economies play a larger role in global trade and investment flows.

Joe Phillips, Managing Director of the US-headquartered Beyond Borders Development Group that provides economic development consulting services, opened the discussion by stressing that “investors must shift from risk aversion to opportunity recognition.” He noted that smaller economies “are often faster to reform, nimbler to implement, and increasingly offer first-mover advantages in renewable energy, blue economy and digital transformation.”

He also advised investment promotion agencies to ‘proactive’ in their approach. “Investment promotion agencies often find themselves reacting to every opportunity that comes their way, without pausing to ask whether it’s the right fit or realistically winnable. The real challenge – and the real value – lies in finding balance between being proactive and reactive. As consultants, we categorise opportunities based on relevance and impact; IPAs should do the same. Too often, they get pulled into activities that serve political or administrative agendas rather than genuine investment outcomes. The key is focus – knowing which opportunities to pursue and having the discipline to follow a clear strategy rather than simply responding to noise.”

Tebantaake Keariki, Deputy Secretary within the Ministry of Internal Affairs of Kiribati, spoke about the resilience of Pacific nations.  She then took the audience through a detailed ‘foreign investment roadmap’ of her small island country in Micronesia that attracted an FDI of USD 5.11 million (Dh19m) in 2023, up 19.68% from 2022 numbers.

“In Kiribati, we have established a clear and robust framework to attract and protect foreign investment. Our Foreign Investment Act 2018, which is currently under review in Parliament, strengthens our commitment to transparency, compliance, and responsible growth. Every application for foreign investment goes through a thorough screening process within our ministry, in consultation with relevant agencies, to ensure it aligns with our national priorities and laws. This structured approach gives investors the confidence that Kiribati – like many Least Developed Countries – is creating a safe, well-regulated, and forward-looking environment for global partnerships,” she said.

Meanwhile, Saleh Saad Mohamed, Executive Director at Zanzibar Investment Promotion Authority Zanzibar Investment Promotion Authority (ZIPA), Tanzania’s primary government agency dedicated to promoting investment in region primarily through fisheries, blue economy and infrastructure development, spoke about his country’s unique three-pronged approach towards investment. “Our focus has been on promoting sustainable tourism through the triple bottom line model – where people, planet, and prosperity go hand in hand. Every development initiative in Zanzibar must reflect this balance, ensuring that tourism not only protects our environment but also distributes income equitably across the economy. True progress comes when growth benefits both our communities and our natural heritage.”

Calling the recent $10 billion strategic partnership signed by Zanzibar in Qatar a ‘pivotal step’ in the island’s path toward ‘development and economic transformation’, Mohamed then explained how Zanzibar’s goal now, however, is to shift from reliance on tourism – which currently contributes about 30% of GDP and employs more than half of the youth – to a diversified economy built on productive and service sectors.

The session was part of the two-day SIF-WIC 2025, which convenes over 10,000 participants from 142 countries under the theme “Transforming Our World: Investing for a Resilient and Sustainable Future”.