UN chief calls on reversal of decade long decline in private sector transactions

UN chief calls on reversal of decade long decline in private sector transactions
UN Deputy Secretary-General Amina Mohammed

Moses Kuwema

 

UN Deputy Secretary-General Amina Mohammed on Friday called for the reversal of decade-long decline in private sector transactions.

In his video message during the second breakfast meeting on the Sustainable Infrastructure Investment Facility, Mohammed said the scale of the world’s infrastructure needs is enormous, if the world is to achieve the 2030 Agenda.  

He said with roughly $90 trillion in infrastructure investments expected over the coming decades, there was a major opportunity to shift the dial towards sustainability while ensuring recovery from the COVID-19 pandemic and tackling climate change.

"And as many have echoed in the previous working breakfast, a major challenge for many countries is that there are inadequate resources and mechanisms to develop pre-feasibility studies, implement and manage infrastructure plans and pipelines and connect with potential investors — particularly the private sector," he said. "Existing initiatives and programmes are trying to address this gap, but still asymmetry of expertise and knowledge puts many Governments at a disadvantage."

Mohammed said with a growing demand for a new type of infrastructure that is green, inclusive and digital, there was a need to accelerate investment on sustainable infrastructure and do it at scale.  

He said this is how the delivery on the promise to recover better and achieve the Sustainable Development Goals will be achieved.

"The decline in private investment in the past decade is cause for grave concern, with transactions involving the private sector dropping from $156 billion in 2010 to $106 billion in 2019.  We need to reverse this trend," Mohammed said. "As we look to support countries in their socioeconomic response to COVID-19 and green transitions, the United Nations is well placed to help transform an investment idea into an investment “ask”.  We are stepping up our capacities to help countries navigate the ecosystem of financing opportunities and United Nations-sponsored alliances of investors."