FDI Centre marketing and strategic business development manager Kathryn Rothwell and FDI consultant Nada Snoussi outline a case for IPA-led gender-based initiatives.
In recent months, diversity, equity, and inclusion (DEI) initiatives have become a polarising issue at the forefront of global business and policy debates. In the US, a wave of political and legal attacks—spearheaded by conservative groups ahead of the election and then legislated by the Trump administration—has led to a significant rollback or rebranding of DEI initiatives across major multinational corporations.
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The US administration has now extended its anti-DEI movement overseas, sending letters to major European firms and contractors demanding compliance with new anti-DEI directives as a condition for maintaining access to US federal contracts. European companies, especially those with substantial US ties, now face immense pressure to abandon their diversity efforts, risking global reputational damage and employee dissatisfaction if they comply, and legal exposure and strained US relations if they don’t.
But while the political climate is increasingly hostile, the business case for gender equality and inclusive investment is stronger than ever. Within this environment, investment promotion agencies (IPAs) must adapt their approach to uphold their mandates: supporting foreign companies and driving sustainable economic growth, with advancing gender equality a key component of the latter.
We highlight five high-impact strategies from FDI Centre’s latest report: “Advancing Gender Equality in Investment Promotion: A Practical Guide for Investment Promotion Agencies”.
Getting clear on the plan
Recommendation: Develop a comprehensive gender action plan outlining specific initiatives, objectives and timelines to achieve these goals.
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By GlobalDataAs DEI becomes an increasingly contentious term, it is essential for IPAs to have a clear strategy. Laying out an internal plan of action provides concrete direction and a framework to revert to when engaging with investors or responding to scrutiny. Such a plan should transparently set out current and future initiatives to advance gender equality, ideally developed by a dedicated, cross-investment-function task force. Having measurable objectives, timelines, and lines of accountability can ensure sustained progress and demonstrate a commitment from leadership to promoting gender equality. It can also help provide both a sense of clarity and resilience for stakeholders in the face of external pressures.
“Ensuring that everyone can participate in society and the economy to the fullest is a prerequisite for shaping strong economies, so gender equality is an important strategic focus for us at the Estonian Investment Agency. To set ourselves up for success and not dilute our efforts on this front, it is crucial to set specific, achievable goals and priorities. We are doing this by taking a realistic look at what resources are available to us and allocating those towards initiatives and events that have the potential to be the most impactful,” said Joonas Vänto, Head of the Estonian Investment Agency, on their gender action plan.
“Examples at this stage include documenting best practices, championing the topic of gender equality internally within our organisation, and, of course, looking outward to partner with other people and organisations to inform and amplify our messages. The response so far has been very positive, and it’s encouraging to see the wealth of different perspectives being brought to the table with the unifying goal of moving towards gender equality in FDI and society as a whole”, he added.
Analysing investment leads for gender equality contributions
Recommendation: Apply gender analysis as one of the criteria for prioritising investment leads, ensuring a balanced and inclusive approach.
In their analysis and scoring mechanisms of incoming FDI —typically on factors such as sector alignment with national or regional priorities, potential for job creation, technology transfer, sustainability, and overall economic impact— IPAs can include impact on gender equality and award higher scores to those that have a positive impact. Including gender equality as part of the measurables ensures that investments that demonstrate a strong commitment to gender equality are also recognised and eligible for enhanced support from the IPA, or even incentives.
Incentivising gender equality
Recommendation: Integrate gender equality criteria into incentive programs to attract foreign investors.
Incentive programs are widely used to attract foreign investors, typically rewarding job creation, innovation, or capital spending. By adding gender-related criteria, such as promoting women’s employment or equitable pay, IPAs can steer investment toward inclusive development outcomes. The Ministry of Investment in Morocco offers a leading example of this. Under its Investment Charter, investors whose projects allocate at least 30% of total payroll to women are eligible for a financial incentive worth 3% of the investment amount. This approach aligns investment attraction with national development goals and encourages gender-responsive business practices from foreign investors.
Matchmaking local women-led businesses with foreign investors
Recommendation: Facilitate market linkages between local women-led businesses and foreign investors.
IPAs can further amplify FDI’s positive impact on gender equality by facilitating market linkages between foreign investors and local women-led businesses. By serving as a connector, the agency can create opportunities for women entrepreneurs to access new buyers and supply chains that might otherwise not have occurred. This can be achieved through networking events, supplier matchmaking programs, or dedicated platforms that showcase women-owned enterprises to investors.
A successful example of this includes Invest Bhutan’s event connecting local women entrepreneurs with foreign hotel corporations with a presence in Bhutan. In December 2024, 13 different hotel chains participated in the event alongside 17 local women entrepreneurs showcasing products in the food, textiles, souvenir and toys, and hygiene industries. As a result of the event, eight hotels out of the 13 started sourcing products from the women entrepreneurs.
Working with investors for greater impact
Recommendation: Offer advisory services to foreign investors on integrating gender equality into their operations.
IPAs can take a proactive advisory role through their aftercare services by providing tools and guidance to help investors integrate gender equality measures into their business practices. This support can range from offering toolkits and materials to organising workshops, training sessions, or individual consultations. InvestChile’s “Measure What Matters” program is one example of this. The program helps investors evaluate their performance, identify challenges, and improve various areas of their business, including the development and implementation of gender equality policies. InvestChile also supports companies in setting gender-related targets and identifying relevant indicators.
