PwC Report On Polish Foreign Investments

In course of the project “Polish Champion” initiated by City of Wrocław and Wrocław Agglomeration Development Agency, a consulting company PwC was asked to carry out a countrywide quality research among Polish companies regarding their international operations. On this basis a report “Experience of Polish businesses in investing on foreign markets”.

Read the report: “Experience of Polish businesses in investing on foreign markets”.

Despite an uncertain economic situation, Polish enterprises continuously invest abroad. The largest number of investors, though it does necessarily coincide with the value of these operations, enters the German, Ukrainian, American, Czech, Russian and Romanian markets. A relatively large number of investments is also located in Asian countries, mostly China. A single investment project carried out by Polish businesses does not usually exceed the amount of 10 million EUR.

The value of Foreign Direct Investments (FDI) made by Polish companies is increasing. A record result of 9,2 billion USD was achieved in 2006. Presently, after a slump related to the world’s economic crisis, Polish FDI are regaining their dynamics. In 2010, according to data published by the National Bank of Poland (NBP) the value of Polish FDI reached 5,5 billion USD, while in 2011 PwC’s estimations put it at over 7 billion USD.

An decision to run investments abroad is usually motivated by the will to develop. Frequently it is due to the limited possibilities of the Polish market. The decision is less often based on matters of costs or effectiveness. Providing that most of Polish foreign operations is taken with the main goal to develop on the local market of the chosen country, the size and potential of that particular market is crucial for the decision. Among other vital factors there is competitiveness, geographical proximity, supply local resources and the level of risk and political stability.

About the report

The report “Experience of Polish businesses in investing on foreign markets” was created on the base of research regarding experiences of Polish enterprises actively investing abroad, conducted in October and November 2011, involving the quantitative (36 surveys) and qualitative part (17 interviews with entrepreneurs).

About the Polish Champion programme

The programme is carried out on behalf of City of Wrocław and WADA, in cooperation with the Ministry of Economy, the Polish Information and Foreign Investment Agency and PwC.

Companies that take part in the programme need to be of at least multilocal character in the area of Europe and have a global strategy. In the pilot programme there are 11 businesses with headquarters in Wrocław: AB, Clarena, Hasco-Lek, Koelner, Kruk, Impel, REC Global, Selena, TelForceOne, Toya and Xantus.