Facilitating investment in SDG?s

Facilitating investment in SDG’s

News: Recently, The UNCTAD released a new publication – “Facilitating Investment in the Sustainable Development Goals”.

Background:
• It is part of UNCTAD’s investment advisory series, which provides practical advice and case studies of best policy practices for attracting FDI that contribute to sustainable development.

Key Findings:
• An estimated $4 trillion is required in developing countries annually to achieve the SDGs. This can be made possible through foreign investment.
• The role of the investment promotion agencies (IPAs) can be significant, as they are the focal point for government-wide efforts to facilitate foreign investment.

Why is investment facilitation crucial?
• Investment facilitation aims at making it easier for investors to establish and expand their investments, as well as conduct their day-to-day business in host countries. It is possible by providing relevant information, making rules and regulations more transparent and streamlining administrative procedures for investors.

What can IPAs help SDG implement through investment facilitation?
• By ensuring that investment facilitation services are inclusive. This will address the specific needs and opportunities of SDG-related sectors, and specific investor groups.
• When establishing a project, IPAs can assist in filling in the information gap by pointing investors to potential partners and incentive programmes. They can forge new partnerships with local governments and national ministries dealing with SDG-related investment opportunities.
• To stay competitive in a digitalised economy post-COVID-19, IPAs have increasingly turned to digital platforms to conduct many of their promotional and facilitation services.

Way Forward
• Developing SDG project pipelines by prioritising sectors where funding is needed the most. Defining related targets and preparing relevant investment project profiles.
•  Investment is particularly important for SDGs-related investment, which often requires more proactive and more tailored services for investors than traditional investment.