Wales needs to improve its ‘brand profile’ and step up collaboration amongst the business ecosystem if it is to attract significant inward investment.
With major developments including Freeports and investment zones entering delivery phase and an Investment Summit on the horizon in 2025, business leaders are calling for a renewed focus on collaboration, planning reform, and building a strong global profile to maximise these opportunities and overcome existing barriers.
Many have told Business News Wales that a renewed focus needs to be put on amplifying Wales’ reputation globally, as well as working together to make the most of the strong networks and ecosystem which already exist in Wales.
A stronger, more cohesive “Brand Wales” has been widely identified as a critical factor in attracting inward investment. The Wales Economic Forum, convened by Business News Wales in December, highlighted the need for a unified and compelling narrative to promote Wales’ strengths internationally. With a collaborative approach across government, public, and private sectors, business leaders believe Wales can create a unique selling proposition that resonates globally.
Major developments, including the Celtic Freeport in South West Wales and the Anglesey Freeport in North Wales, are projected to deliver significant economic benefits. The Celtic Freeport alone is expected to attract £8.4 billion in investment, create 11,500 jobs, and add £8.1 billion to the economy.
Similarly, the Anglesey Freeport is forecast to create up to 13,000 jobs across North Wales and add £1 billion to the UK’s GVA by 2030. These Freeports, supported by investment incentives such as enhanced capital allowances and Business Rates relief, are seen as a cornerstone of Wales’ strategy to attract high-value industries and decarbonise the economy.
The upcoming Investment Summit in 2025 is another critical opportunity to showcase Wales on the global stage. Welcoming the move, Ben Cottam, head of Wales for the FSB, called for a ‘Team Wales’ approach to ensure its success, and said that government could rightly consider business as not only a partner but as the solution to many problems.
However, alongside these opportunities, barriers remain. One of the most significant challenges is the state of Wales’ planning system, which has been described as a deterrent to inward investment.
Speaking at Cardiff Business Club, Stuart George, managing director of Bute Energy, highlighted the shortcomings in the planning system in Wales, saying it is “not fit for purpose” with a lack of resource holding projects up.
This leads to a lack of confidence amongst investors when they consider Wales, he said, adding:
“Investors hate a lack of stability and confidence”.
He said he was hopeful that 2025 would see progress towards a Sector Deal for the renewables industry in Wales, similar to one already in place in Scotland which has led to investors having more confidence in projects there.
Planning is high on the agenda for the Welsh Government, with First Minister Eluned Morgan and Cabinet Secretary for Economy, Energy and Planning Rebecca Evans acknowledging the challenges. A consultation on improving planning performance and resilience is set to close on January 17.
Wales’ investment ecosystem for start-ups and scale-ups has also shown signs of improvement. Initiatives such as Women Angels of Wales and Angels Invest Wales are fostering local investment, with a focus on supporting entrepreneurs and diversifying investment networks. Sara Boltman, founder and CEO of Butterfly Data, highlighted the value of these networks, telling the upcoming episode of the Business News Wales Finance & Investment Wales podcast:
“In Women Angels of Wales, we’ve been going through a UKBA angel investment course. That’s one of the advantages of being in a syndicate like that—we get to learn and share knowledge.”
Despite these positive developments, there is still a lack of indigenous venture capital in Wales. This gap continues to be a challenge for start-ups and scale-ups, which are essential to building a thriving innovation ecosystem.
Another untapped opportunity lies in Wales’ global diaspora. A recent study by GlobalWelsh revealed that 25% of diaspora entrepreneurs are ready to invest in Wales within 12 months, highlighting the potential of this highly educated and entrepreneurial network.
Walter May, CEO of GlobalWelsh, described the diaspora as “a huge untapped resource,” and urged the Welsh Government to engage this group in planning for the upcoming Investment Summit.
The study also revealed barriers that prevent diaspora entrepreneurs from investing in Wales despite their appetite to do so. These include a lack of information about Welsh businesses which are seeking investment, an uncertainty around regulations, and a lack of knowledge about the support on offer from the Welsh entrepreneurial ecosystem.
Looking ahead, business leaders are clear that there is much to be optimistic about. Wales’ Freeports, Investment Zones, and grassroots investment initiatives provide a strong foundation for growth.
But they are calling for greater collaboration across government, public and private sectors, planning reform, and a unified brand strategy – all of which they believe will be essential to maximise these opportunities and position Wales as a dynamic and competitive destination for inward investment.
