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Speech by Mr. Tegegnework Gettu
United Nations Under-Secretary-General and Associate Administrator of the UNDP
At the "Africa-China Sustainable Cooperation on Economic Structural Transformation, Towards 2030" – Djibouti, 5 July 2018 [19659002] Excellency Mr. Ismail Omar Guelleh, President of the Republic of Djibouti,
Excellencies,
On behalf of the Administrator of UNDP, Mr. Achim Steiner, I would like to thank the Government of the Republic of Djibouti, the Port Authority and Free Zones of Djibouti, the China Council for the Promotion of International Trade, the Ministry of Commerce of the People's Republic of China and the Made in Africa Initiative for the organization of the first Africa-China International Economic Forum in Djibouti and for choosing UNDP as a partner in this important enterprise for Africa and for the world.
As the theme of this forum indicates, economic structural transformation is crucial. to move towards the 2030 Agenda for Sustainable Development and achieve the Sustainable Development Goals. Multi-stakeholder partnerships and regional collaborations such as that between Africa and China, for which Djibouti plays a central role, offer many opportunities to promote economic growth, industrialization and investment for Africa. sustainable development in Africa and elsewhere.
Let me begin my remarks by pointing out why structural transformation is essential in the case of Africa. First and foremost, economic structural transformation and industrialization are essential to lift people out of poverty and away from poverty.
The 2030 Agenda's aspiration to "leave no one behind" can only be achieved through a combination of two elements: first – effective social protection, and second – a better creation of decent jobs especially to generate sustainable income for the large and growing segment of young people.
Young people in Africa are the future of the continent and will soon become agents of change for a better, sustainable, prosperous and peaceful world. It is therefore extremely important to invest in young people, in Africa and elsewhere, in accordance with the 2030 Agenda that calls for educating and training people, taking advantage of new technologies for sustainability and the creation of new technologies. Jobs to reduce inequalities and address gender disparities. and diversification is also crucial to enhance resilience to shocks, whether due to commodity price volatility, natural hazards such as drought, conflict and instability, or epidemics such as climate change. Ebola virus. Diversification from agriculture and commodities is one way to mitigate these shocks and is an effective way to mitigate these risks.
Structural transformation is also essential for long-term environmental sustainability on the continent. The growth patterns in Africa have required a lot of resources, whether exploring minerals and hydrocarbons, or agriculture. Whatever the case may be, Africa is still extremely rich in natural resources, but only structural transformation, diversification and a transition to labor-intensive manufacturing will allow countries to chart paths for sustainable development.
report prepared jointly by ADB, OECD and UNDP, two-thirds of the investments needed in urban infrastructure until 2050 remain to be achieved and with adequate policies, these investments can increase productivity agricultural, boosting industrialization and high value-added services, "
Investing in sustainable and resilient infrastructure is indeed a prerequisite for achieving the SDGs and combating climate change. Such investments will not only help stimulate economic growth, increase demand and create jobs in the short term, but also lay the foundation for long-term growth and increase the resilience of societies to climate shocks. and other disasters.
The infrastructure gap is significant, there is no shortage of capital because the total stock of global financial badets is about 300 trillion dollars. Mobilizing private resources to reduce the global infrastructure gap is key. While private participation in infrastructure has decreased every year since the adoption of the Addis Ababa Action Agenda in 2015, initiatives such as this forum bring together a range of public and private partners to across continents to build confidence and discuss innovative ways to integrate the market. As pointed out in the debate on the 2030 Agenda, the realization of this universal program of peace and prosperity requires mutual effort. This requires new partnerships, especially with the private sector as a major source of investment for the SDGs, which will be an even more valuable partner as it adopts business practices consistent with inclusive sustainable development. As a positive trend, we see the growing interest of the private sector in linking investments to sustainability goals. According to a recent KPMG report, 93% of the top 250 global companies in terms of business turnover now report sustainability. Impact investors, who intend to generate environmental, social and governance impacts in addition to financial returns, manage badets of approximately $ 22 billion.
However, more is needed for the global financial system to meet the SDGs, including by investing in sustainable and resilient infrastructure. For example, international institutional investors with longer-term commitments hold approximately $ 80 trillion, representing a significant potential source of funding for sustainable development. Yet, for example, the largest pension funds invest only 3% of their global badets in infrastructure, and even a lower percentage in African countries. Investment in sustainable development requires long-term investments that entail longer-term risks, such as those badociated with climate change. Nevertheless, many investments remain excessively short-term oriented because of incentives in the financial system.
To fill this gap, the financial system needs to be reoriented, which requires creating motivation and incentives. Governments have a major role to play in creating incentives to align private finance with sustainable development priorities. This can be done through grants or guarantees as well as strengthened institutional, legal and regulatory policies and frameworks.
It is absolutely essential to better align investment flows with sustainable development for investments in infrastructure. What is decided now in terms of investment will lock development paths for many decades. Therefore, it is crucial that infrastructure plans include adequate stakeholder consultations and integrate badessments of climate impact, resilience and gender, so that they contribute to creating a better climate. better future.
It is equally crucial that African countries have access to risk-based types of financing that best meet their needs. Examples include financing instruments used for investments in sustainable and resilient infrastructure, which are essential for disaster risk reduction, and do not exacerbate other risks such as over-indebtedness.
In conclusion, let me go back to the beginning. my speech and highlight the importance of partnerships and regional and interregional collaboration – in line with the commitments made under the SDG 17. The China Belt and Road Initiative is an important example of interregional cooperation to promote connectivity between African, Asian and European countries. through better infrastructure connectivity, closer trade relations, financial integration and policy coordination. Today, we are showing a concrete example by meeting in Djibouti, a historic place where people, culture, traditions and commerce meet.
I look forward to the Forum's discussions on the progress of this initiative. We are ready, as UNDP, to support opportunities for economic collaboration and private sector transformation around the world, and to support Africa-China cooperation efforts to strengthen sustainable development and ensure no one is left behind. [19659002] Thank you.
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