Reimagining Private Capital for SDGs: Bridging the Private Capital Financing Gap in the Global South
The revised Sustainable Development Goals (SDGs) funding gap from private investments now stands at a staggering USD 4.2 trillion annually. Impact investing, where investments are made with an intentionality towards the SDGs, has been estimated to have crossed USD 1 trillion in global assets under management, growing at up to 25%. However, this growth has been significantly skewed toward sectors such as financial services, agriculture, and clean energy, together accounting for 55% of asset allocation. To accelerate bridging the SDG financing gap, impact investors need to recreate these success stories in the currently underinvested sectors such as WASH, healthcare, affordable housing. Further, the growth in private investments is also skewed toward more developed emerging markets. Despite the 70% increase in foreign investments in SDG-related sectors in developing countries in 2021, a strong rebound from the early pandemic lows, the share of 46 Least Developed Countries (LDCs) in these investments dropped from the already modest 19% in 2020 to 15% in 2021.
In this session, we bring together investment professionals from the development sector to discuss the investment opportunities in underinvested sectors and geographies and the initiatives and financial tools to mobilize more private capital in these areas.
In the next session, we will build on this topic and bring together risk management professionals from the development sector to discuss the challenges of investing in underinvested sectors, especially in the context of an inflationary post-pandemic world, and potential solutions.
MODERATOR:
- Arun Asok, Strategic Lead, Private Capital and Impact Investing, Abt Global
PANELISTS:
- Andreas Eichin, Director of Structured Credit, Kiva Capital
- Pranay Samson, Director, Innovative Finance, Plan International
- Dipa Sharif-Ahmed, Senior Advisor, Innovative Finance and Market Access, USAID
- Kusi Hornberger, Partner & Global Knowledge Lead, Dalberg Advisors
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Learn more about the Reimagining Private Capital for SDGs webinar series.