The FDI PR Disaster Every Agency Must Study
In a guest post, our friends at Clearshot say the recent Cloudflare CEO vs Portugal confrontation should be a wake-up call for FDI attraction agencies.
If you've spent time on X over the last few weeks, you've probably seen Matthew Prince, Cloudflare's CEO, heavily criticizing the Portuguese government after his company's challenging experience expanding there.
"Portugal promises much and delivers very little," he tweeted to his over 100,000 followers, followed by pointed comments about meetings with Lisbon's mayor: "There has always been lots of talks and promises, not much action. I'll save my optimism until I see action."
The controversy escalated after Prince was allegedly involved in a security incident at Cascais Municipal Aerodrome, where he reportedly attempted to board his private aircraft without submitting luggage to mandatory screening. While Prince has downplayed the airport incident, his broader frustrations reflect a deeper issue.
In many countries, there's a glaring mismatch between what national and local trade and investment promotion organizations promise and the reality of doing business. Prince specifically pointed to long-standing issues with visa processing and hiring delays, accusing Portuguese authorities of failing to deliver on promises of a streamlined onboarding process for international talent.
Hiring foreign workers is "simple" and "fast"—until you actually need to issue an offer to a Ukrainian engineer and face months of visa delays. Building permits get done in "3 days"—until you're stuck in endless bureaucratic labyrinths that drag on for months.
Prince might have been vocal about this issue with his large megaphone, but every economic development professional knows this scenario plays out globally.
The hard truth that trade and investment promotion agencies need to face: this is not an isolated case.
What can economic development agencies do to avoid the "not as advertised" complaint?
Get in the weeds and solve problems actively. Don't just make introductions—use your governmental status to actually resolve bottlenecks. If an agency is delaying a certificate that blocks a company's expansion, go there personally and get it unstuck. Be hands-on, not hands-off.
Actually implement investor feedback. Don't just offer polite customer service meetings where you take notes and change nothing. Assign someone in your agency to systematically incorporate foreign investor feedback into policy changes and process improvements. Many bureaucratic delays can be solved by changing simple processes, not just grand policy reforms.
Follow up daily, not just during crises. Bureaucratic knots can only be untied with consistent daily work that simplifies processes. You can't just pay attention when issues blow up on social media and then let them slide back into dysfunction.
"I love Portugal, I love the people, I'm just frustrated with the Portuguese government," Prince clarified. While Cloudflare remains operational in Lisbon, future expansions in Portugal now appears uncertain.
The controversy serves as a stark reminder that in today's hypercompetitive global economy, nice branding and glossy marketing materials won't cut it anymore. Investment destinations that deliver actual, measurable value—not just promises—will be the winners. Word-of-mouth from satisfied investors, not expensive ad campaigns, will drive FDI flows.
Economic development agencies that take this wake-up call seriously and fix their operational gaps will thrive. Those that don't will watch frustrated CEOs take their investments elsewhere—and broadcast their complaints to hundreds of thousands of followers.