Minister of Finance Enoch Godongwana has called for visible thought leadership on how the New Development Bank (NDB) can play a more catalytic role in the achievement of Sustainable Development Goals (SDGs) in developing and emerging markets.
The SDGs are a universal call to action to end poverty. To also protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
“The bank must be unwavering in its commitment to the SDGs. This as it remains the most relevant benchmark for the development priorities of developing countries. Therefore, as we grow and strengthen the NDB as an institution, we must not lose sight of its developmental mandate.
“There is a need to address global challenges such as geopolitical challenges. This impacts multilateralism. It escalates climate stresses …widens economic and social divides, and challenges we face at a national level.
Global challenges
“This includes poverty, inequality, and unemployment that continue to plague our societies,” Godongwana said on Friday. The minister was addressing the NDB Annual meeting in Cape Town.
He noted the significant progress that has been made by the bank since being operational.
“[However], we must recognise that there is still much work to be done. As the 2030 Agenda draws near, increased momentum towards achieving the SDGs is imperative. This is a critical time for global development partners. For them… to come together and convey a strong message on the broad development agenda,” he said.
The minister said progress on the SDGs will require targeted investment.
“Access to concessional development finance for developing countries is imperative. This to ensure accelerated progress in addressing development challenges and achieving inclusive growth. These create economic opportunities for all.
Private capital investments
“In addition, there is a need for sizeable increases and greater stability in the flow of private capital investments. The NDB can play an essential role in mobilising private investment and ensuring it flows where it is needed most.
“The bank must implement innovative financing instruments to crowd-in private sector participation. This should be accompanied by technology transfer and capacity building support. [These will act] as multidimensional enablers to accelerate the implementation of the SDGs. Especially in key areas such as renewable energy, infrastructure development, digital access and job creation,” he said.
The minister said investment in infrastructure is central to the achievement of the development goals.
“Infrastructure is an enormous economic multiplier. It provides dividends for an economy long after the infrastructure has been built. The NDB’s activities …in developing and emerging markets will assist in addressing the large infrastructure financing gap. This has been impeding economic growth and development, particularly in Africa.
“In this slow growth environment, fiscal and monetary policy is limited. Public and private role players need to collaborate to support growth.
De-risking infrastructure projects
“To this end, we look to the NDB to provide solutions aimed at de-risking infrastructure projects. This through its financial instruments, in order to attract private capital,” the Minister said.
This will support infrastructure projects. It will also provide technical assistance in designing innovative funding models and institutional arrangements. These could accelerate infrastructure investments at a country-level.
“However, if the bank is to continue advancing the interests of the developing world and address challenges such as renewable energy, infrastructure development, digital access and job creation, then NDB must make a concerted effort to speed-up disbursements of approved projects.
“As more African countries become members of the NDB, we believe that the Bank can play a very instrumental role. This in the provision of infrastructure and addressing its infrastructure deficit,” he said.
- SAnews.gov.za
