Latest news with #FinancingForDevelopment
Zawya
12 hours ago
- Business
- Zawya
Global FDI rose 4% in 2024 to $1.5trln: UNCTAD
GENEVA - The United Nations Conference on Trade and Development (UNCTAD) revealed a decline in global foreign direct investment (FDI) value by 11 percent, marking a second consecutive year of contraction. According to UNCTAD's World Investment Report 2025, issued Thursday in Geneva, global FDI increased by 4 percent in 2024 to reach US$1.5 trillion. However, this rise was driven in part by volatile financial flows through several European economies, which often act as investment transit hubs. The report stressed that the findings underscore the urgent need to reshape investment and finance systems to support inclusive and sustainable growth. The report comes ahead of the Fourth International Conference on Financing for Development, which will bring world leaders together to address the widening gap between capital flows and development needs. UNCTAD noted that investment fell sharply in developed economies, particularly in Europe, while flows to developing countries remained broadly stable. Rebeca Grynspan, Secretary-General of UNCTAD, said fragmentation and volatility are distorting investment flows, adding that the investment landscape in 2024 was shaped by geopolitical tensions, trade fragmentation, and intensifying competition in industrial policies. She explained that these dynamics, coupled with elevated financial risks and uncertainty, are redrawing global investment maps and undermining long-term investor confidence. The report highlighted a 22 percent decline in FDI to developed economies, including a 58 percent plunge in Europe, while North America bucked the trend with a 23 percent increase, led by the United States. Regional trends varied: Africa saw a 75 percent surge in FDI, driven by a single large project in Egypt. Excluding this, inflows rose by 12 percent, supported by investment facilitation and regulatory reforms. Asia maintained its position as the leading recipient region. Despite a slight 3 percent decline overall, Southeast Asia recorded a 10 percent rise in FDI to US$225 billion — the second-highest level on record. In contrast, Latin America and the Caribbean saw a 12 percent drop in total inflows, although announcements of new projects rose in key markets such as Argentina, Brazil and Mexico. The report affirmed that the Middle East maintained strong FDI inflows, supported by economic diversification efforts in the Gulf region. FDI flows among structurally vulnerable economies varied: they increased by 9 percent in least developed countries (LDCs) and by 14 percent in small island developing states (SIDS), but declined by 10 percent in landlocked developing countries (LLDCs). Across all three groups, investment remained heavily concentrated in a small number of countries.
The National
10-06-2025
- Business
- The National
Antonio Guterres: We need a rescue plan for sustainable development
This month, leaders will gather in Sevilla, Spain, on a rescue mission: to help fix how the world invests in sustainable development. The stakes could not be higher. A decade after the adoption of the Sustainable Development Goals and many global commitments to finance them, two thirds of the targets are lagging. And the world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030. Meanwhile, the global economy is slowing, trade tensions are rising and aid budgets are being slashed while military spending soars and international co-operation is under unprecedented strain. The global development crisis is not abstract. It is measured in families going to bed hungry, children going unvaccinated, girls being forced to drop out of school and entire communities deprived of basic services. We must correct course. That begins at the Fourth International Conference on Financing for Development in Sevilla, where an ambitious, globally supported plan to invest in the Sustainable Development Goals must be adopted. That plan should include three essential elements. First, Sevilla must help accelerate the flow of resources to the countries who need it most. Fast. Countries must be in the driver's seat, mobilising domestic resources by strengthening revenue collection and addressing tax evasion, money laundering and illicit financial flows through international co-operation. This would provide much-needed resources to prioritise spending on areas with the greatest impact such as education, health care, jobs, social protection, food security and renewable energy. At the same time, national development banks, regional and Multilateral Development Banks need to come together to finance major investments. To support this, the lending capacity of these banks needs to triple so developing countries can better access capital on affordable terms with longer timelines. This increased access should include re-channeling of unconditional reserve assets – or Special Drawing Rights – to developing countries, preferably through Multilateral Development Banks to multiply their impact. A decade after the adoption of the Sustainable Development Goals and many global commitments to finance them, two-thirds of the targets are lagging Private investment is also essential. Resources can be unlocked by making it easier for private finance to support bankable development projects and by promoting solutions that mitigate currency risks and combine public and private finance more effectively. Throughout, donors must keep their development promises. Second, we must fix the global debt system. It is unfair and broken. The current borrowing system is unsustainable, and developing countries have little confidence in it. It's easy to see why. Debt service is a steamroller crushing development gains, to the tune of more than $1.4 trillion a year. Many governments are forced to spend more on debt payments than on essentials like health and education combined. Sevilla must result in concrete steps to reduce borrowing costs, facilitate timely debt restructuring for countries burdened by unsustainable debt, and prevent debt crises from unfolding in the first place. In advance of the conference, a number of countries put forward proposals to ease the debt burden on developing countries. This includes making it easier to pause debt service in times of emergency; establishing a single debt registry to strengthen transparency; and improving how the IMF, World Bank and credit-ratings agencies assess risks in developing countries. Finally, Sevilla must raise the voice and influence of developing countries in the international financial system so it better serves their needs. International financial institutions must reform their governance structures to enable greater voice and participation of developing countries in the management of the institutions they depend on. The world also needs a fairer global tax system, one shaped by all governments – not just the wealthiest and most powerful. The creation of a 'borrowers club' for countries to coordinate their approaches and learn from one another is another promising step toward addressing power imbalances. The meeting in Sevilla is not about charity. It's about justice, and building a future in which countries can thrive, build, trade and prosper together. In our increasingly interconnected world, a future of haves and have-nots is a recipe for even greater global insecurity that will keep weighing down progress for all. With renewed global commitment and action, Sevilla can spark new momentum to restore a measure of faith in international co-operation and deliver on sustainable development for people and planet.
The Independent
06-06-2025
- Business
- The Independent
Global aid cuts are a massive wake-up call. It's time to give Africa a bigger voice
In less than a month, Seville will host the Fourth International Conference on Financing for Development in a climate of uncertainty following the abrupt decision by the US to dismantle its aid programmes. But Washington is not alone in this posture. The European Union agreed to reallocate €2 billion (£1.7bn) reallocation from development budgets in February 2024 —and many individual European countries have made cuts to their aid budget. It is a clear signal that the landscape of Overseas Development Assistance (ODA) is shifting. For Africa, this isn't just a reshuffle, it is a wake-up call for deep reflection and action: will we adapt, or will aid simply become a relic of the past? The timing is bad, the rationale questionable, and the ripple effects threaten to impact the lives and health of millions depending on aid programmes. Let's be honest: aid has had a mixed impact. The spectrum of aid's legacy in Africa, including my country, Guinea, runs from positive to disastrous. On the positive side, aid has contributed to infrastructure development – I'm thinking for instance about a project in northwest Guinea to replace an old ferry with a new road and bridge. During a visit, a cunning minister of public works convinced a skeptical partner to go on a very 'special' field trip via the old route, one that left a senior official so sore and tired that all doubters saw the project's true necessity. Once it was completed, traffic soared, proof that aid can work when it's aligned with real needs. But aid can fall flat. When I was serving as minister of finance, I led efforts to curb directly awarded contracts and boost transparency following an audit of public procurement procedures. The goal was to improve the quality and cost-effectiveness of public spending. But some donors were not willing to support this effort. I deplored one particular partner's failure to listen and, above all, a stubborn insistence on taking us backwards by ignoring our analysis. I said no to the help on offer. It was hard but necessary. Aid must serve the real priorities, not satisfy bureaucratic checkboxes. In a recent discussion with the director of an incubator to help small and medium-sized businesses grow – funded by a government donor – I was struck by the emergence of shortcomings I thought belonged to the past. These included a laziness to question one's own model for delivering results, despite warnings about the risks of inefficiency. We also see a narrow focus on so-called "easily accessible" geographic areas, such as capitals, and on disbursements. Aid, in many cases, has helped sustain corrupt elites or fostered unhealthy alliances with public administrations – perpetuating dependency rather than solving problems. When I look back on my own experience in development – a journey close to an out-of-body experience for an African – I realise we are at a critical juncture. It's the moment to question the very foundations of aid institutions inherited from the post-colonial era. Despite some positive reforms, such as untying aid, the core premise remains unequal. It is predominantly driven by the donors, with African countries still being passive recipients rather than active partners. How can this be changed? Change starts with listening. The 'receiving hand' is not dumb and has ideas. It knows its needs. Recipient countries, especially in Africa, must be at the centre of the discussions. Conversations largely driven by donors are a recipe for failure. Furthermore, African organisations and think-tanks must be active players. Decolonising aid must be more than just a buzzword. We are making progress, but it must be accelerated. We continue to see consultancies denied opportunities due to insufficient financial strength – despite their thorough knowledge of the field. It also means better coordination between donors. You would think this is obvious, and yet despite witnessing many innovative and pragmatic approaches, I still see some partners continue to burden governments' limited capacities by each imposing their own distinct systems and reporting requirements. This ends up being a distraction. Recipient governments are key and are the only ones who should replace any donor. I believe the cuts could be an opportunity to make fiscal compromises that (finally) prioritise the necessary and the productive over the superfluous and the personal gain of some actors. Aid must be used strategically and selectively. It should foster technical cooperation for Africa's economic transformation, its integration higher in global value chains. Aid should be a catalyst to reform the global financial architecture by leveraging innovation and the capital needed to finance our massive infrastructure programmes. It must be an instrument for the Africa Union's theme of the year: "Justice for Africans and People of African Descent Through Reparations'. It's time to make sure those people are at the table, and their voices are listened to.
LBCI
15-05-2025
- Politics
- LBCI
Aoun, Gemayel discuss elections as Spain invites president to UN Development Conference
Kataeb Party leader Samy Gemayel met with President Joseph Aoun to discuss the country's general situation and the ongoing process of municipal and mukhtar elections. In a separate meeting, President Aoun received a formal letter from Spain's Ambassador to Lebanon, Jesús Santos Aguado, conveying an invitation from King Felipe VI. The invitation is for Lebanon to participate in the fourth United Nations International Conference on Financing for Development, scheduled in Seville from June 30 to July 3.
