Multilateral banks prepare $400bn Sustainable Development Goal financing plan

14 Jul 15
The multilateral development banks and the International Monetary Fund plan to extend more than $400bn in financing over the next three years in order to meet the new Sustainable Development Goals (SDGs).
 

As the third United Nations financing for development (FfD) conference got underway in Addis Ababa yesterday, a statement from the African Development Bank said the institutions would work more closely with private and public sector partners to help mobilise the resources needed to meet the challenge of achieving the SDGs.

The institutions are: the African Development Bank; Asian Development Bank; European Bank for Reconstruction and Development; European Investment Bank; Inter-American Development Bank; World Bank; and the IMF. 

The SDGs demand billions of dollars in official development assistance (ODA) and trillions of dollars in investment if they are to be delivered, the AfDB’s statement said. 

ODA needs are estimated to be $135bn a year, especially in the poorest and most fragile countries, while investment needs in infrastructure alone could reach up to $1.5tn a year in emerging and developing countries.

Meeting the “staggering but achievable” needs of the SDG agenda requires everyone to make the best use of each dollar from every source, and draw in and increase public and private investment, it continued. 

“The vow to increase their contribution to more than $400bn over the next three years reflects in part efforts to make even better use of their balance sheets.” 

AfDB president Donald Kaberuka said: “2015 is a critical year in charting the development future of Africa – the continent that still has the greatest development needs, and the continent that presents the greatest opportunity – for itself and for the world.”

IMF managing director Christine Lagarde added that the fund was committed to promoting economic growth and stability. 

“This year marks a once-in-a-generation opportunity for global development,” she said. “The only way to seize it is through partnership. To go far, we must go together.” 

Jim Yong Kim, World Bank president, said “we need trillions, not billions, of dollars” to help people build better lives with good education, quality health care, clean water, proper sanitation and preparing the world to deal with the challenges of climate change and the next pandemic.

“We must cast away the stereotypes of aid and think about development dif

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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