Enhancing development outcomes of FDI: 10th edition of the ILO–WAIPA Training

Geneva (ILO News) – "How can we enhance the decent work outcomes and sustainable development impact of Foreign Direct Investment?” This was the guiding question of the tenth edition of the annual ILO–WAIPA course on Investment Facilitation and Sustainable Development, held from 26 to 30 May 2025 at the International Training Centre of the ILO.  The course brought together 25 participants from 20 Investment Promotion Agencies (IPAs) across Africa, Europe, and Asia to share good practices and explore how IPAs can shape the development outcomes of FDI through investment promotion, facilitation, aftercare services, and impact measurement.

Aligning FDI with Development: A Structured Approach

Two key frameworks provided guidance throughout the week to support a structured and strategic approach to maximizing the positive impact of FDI: The 2030 Agenda for Sustainable Development, consisting of 17 Sustainable Development Goals (SDGs) and 169 targets; and The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration), which offers guidance on implementing actions related to SDG 8 (Decent Work and Inclusive Growth) and SDG 17 (Partnerships).

Engaging with Investors on Decent Work – The ILO MNE Declaration

Dialogue with a wide range of stakeholders and establishing win-win partnerships were highlighted as essential strategies for improving FDI outcomes related to decent work and sustainable development. In this context, the ILO MNE Declaration was presented as a tripartite framework offering practical guidance for IPAs to engage with both new and existing investors (MNEs), various government institutions, local businesses, and other actors to better link FDI with national development priorities.

This approach is particularly relevant given ongoing global transitions - digital, environmental, and demographic - as well as geopolitical shifts that are influencing trade, investment patterns, and the world of work.

Participants discussed issues such as job creation for local communities, skills development, and business linkages with domestic enterprises. Particular attention was given to legislation in investor home countries concerning responsible business conduct and its influence on FDI.

The Ghana Investment Promotion Centre (GIPC) shared its experience as a national focal point for the MNE Declaration, highlighting concrete actions such as facilitating dialogue with foreign investors to attract investments that result in more and better jobs in Ghana.

Measure What Matters – Impacts: KPIs for FDI

Building on this structured approach, participants explored the concept of quality or sustainable FDI in contrast to conventional investment. The OECD presented its FDI Qualities Policy Toolkit, which complements the OECD Policy Framework for Investment. The toolkit focuses on policy and institutional reforms to enhance investment impacts in four SDG-related areas: productivity and innovation, job quality and skills, gender equality, and decarbonisation.

The ILO presented the Key Performance Indicators (KPIs) for assessing the Impact of FDI on Decent Work, developed jointly with WAIPA. Based on the ILO MNE Declaration, this tool includes 51 indicators and related data points across 11 themes relevant to achieving decent work—such as employment opportunities, skills development, gender equality, social protection, rights at work, and a safe and healthy working environment.

From Learning to Action

Participants shared experiences from their countries and developed action plans to better embed sustainable development considerations into IPA operations and further the decent work agenda through investment facilitation. The workshop concluded with presentations of these action plans, many of which included specific steps for improved regional and subregional collaboration. Participants also expressed a strong interest in continuing the exchange of knowledge and experiences.