1. Top startup countries
It’s no surprise that the US is ranked top for startup companies in terms of ecosystems globally. Access to funding, expertise, knowhow and infrastructure makes famous the US and San Francisco in particular for excelling at growing young companies.
The second most attractive destination for startups is the UK. The UK’s legal system, language, timezone and ease of doing business make it a great location for young companies to grow and prosper, especially those doing business internationally.
Israel, Canada and Sweden also feature in the top 10 country destinations for quality of ecosystem for startups. The highest ranking European country in only sixth place is Germany according to a recent report by Startup Blink which ranks locations based on quality, quantity and business environment. Singapore and Australia feature in spots seventh and eighth. You can read the full report here.
2. Europe top investor in Bogotá
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The investment agency for Bogota Colombia’s capital has announced Europe as the top investor in the region from 2012 to 2022. Invest in Bogota sent a delegation to Spain and Germany to encourage additional inbound investment. The agency said 576 projects came from Europe in the past decade which have created $USD 10 million and generated 50,000 jobs.
In 2021, Bogota’s main FDI attracting sectors were software & IT, communications and services.
3. DIT is now Department for Business and Trade
Westminster (c) Eluveitie via Wikimedia COmmons
UK Prime Minister Rishi Sunak announced last week the abolition of existing Government departments and creation of new ones. In some cases it is a merging of departments for example the Department of International Trade merged with Department for Business, Energy and Industrial Strategy to create the new Department for Business and Trade.
The new ‘DBT’ will be headed by current Minister for Trade Kemi Badenoch. DBT will have overarching responsibility for economic growth, business, inbound FDI, free trade agreements, supply chain, innovation and civil service SLAs.
4. Indonesia’s nickel, battery & EV strategy
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Nickel is the world’s fifth most abundant element but only 22nd most abundant in the crust. It is crucial in the manufacture of nickel-cadmium batteries which can be used in the production of electric vehicles.
Indonesia with 21 million tonnes of natural nickel reserves has the world’s largest reserves of nickel. Indonesia has recently announced its ambitions to become an electric vehicle and battery manufacturer of importance. Global EV companies such as BYD of China and Tesla of the USA have both reportedly negotiating manufacturing hubs in Indonesia.
The local Indonesian population of 270 million could also be a potential local target market for EV producers however developing infrastructure and low consumer affordability may lead to slower adoption.
However, Indonesia imposed an export ban on unprocessed nickel in 2014. In 2021 Europe asked the World Trade Organisation to consider whether this rules was in breach of trade rules and the World Trade Organisation concluded that Indonesia is in breach of trade rules by imposing an export ban on unprocessed nickel.
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5. Europe’s top FDI cities
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FDI Intelligence has ranked London as the top European city for FDI in the recent European Cities FDI report. The report assessed 370 European cities and 180 regions across Europe for FDI. Amsterdam was second followed by Dublin and Paris. London topped the overall chart and ranked also top for overall business friendliness, lifestyle, cost effectiveness, human capital, connectivity and economic potential.
Frankfurt topped the large cities section. Zurich was first in the mid cities ranking followed by Vilnius in Lithuania. Basel won the small cities table followed by Luxembourg.
Top 3 regions were Paris region in France followed by South-East of England and North Rhine Westfalia in Germany.
Bucharest In Romania entered the top 10 for the first time due to its FDI performance per capita being 15 inward projects per 100,000 citizens.
You can download a copy of the report here.
6. US exempts UK from added screening rules
© Tvabutzku1234 Flags_of_UK_and_USA Flickr
The US in a vote of confidence has ruled that it deems the UK to have implemented strong enough foreign investment screening laws that the UK will not be subject to extra screening checks on inbound FDI in certain real estate and non-controlling deals.
The UK Government has famously blocked several Chinese investments since implementation of the National Security and Investment Act 2022. For example, the takeover of the UK’s largest semiconductor factory Wafer Fab last year, an IP license held by the University of Manchester by a Beijing Company ‘Infinite Vision,’ and Pulsic a UK software company specialising in electronic design automation by Hong Kong chip designer Orange HK. The UK has also banned the use of Chinese company Huawei’s equipment in its new 5G telecommunications network.
On Friday Committee on Foreign Investment in the US (Cfius) voted in Washington to exempt the UK of added screening. It has also cleared other countries in the ‘five eyes alliance’ being Canada and Australia.
7. UK Global Investment Summit announced
Global Investment Summit
The new Department for Business and Trade will host the UK’s second Global Investment Summit to take place in October 2023. It will aim to attract 200 global company leaders & investment companies to showcase the UK as an investment destination.
The first Global Investment Summit was held in 2021 which secured £9.7 billion in funding which created 30,000 new jobs. DIT launched the UK’s Investment Atlas which shows strategic investment opportunities across the UK.
GIS 23 will focus on technology specifically innovation, research and development.
