The emerging post-2015 development agenda has a very strong focus on inclusive and sustainable development, which are crucial components to reduce poverty and ensure economic growth while preserving the planet for future generations. Existing and new forms of development finance will need to be marshalled and made to work together seamlessly to achieve this agenda.
The financial requirements for Least Developed Countries (LDCs) to meet the goals of the Istanbul Programme of Action are enormous. ODA can be the largest source of external finance in some of the poorest and most vulnerable countries. LDCs can face major constraints in mobilizing other resources for development - both private and public, foreign and domestic - and in channeling them into social and economic infrastructure and productive investments, particularly at the local level.
UNCDF in collaboration with the Government of Benin and the Government of Ethiopia is organizing a side event at the Third International Conference on Financing for Development (FFD3): Expanding the Frontier: Mobilizing local and inclusive finance for development on July 14th from 10:00AM to 11:30AM in the Conference Room “Mars” at the Elilly Hotel in Addis Ababa. Concept note available here.
The objectives of the event are two-fold:
- To identify concrete models of using ODA to mobilize domestic resources that promote local and inclusive finance; and
- To identify specific actions to scale up those models.
The event will explore how ODA is a critical stage-setter to leverage additional funds and to support the mobilization of domestic savings and capital for local investment, so as to promote inclusive growth outside capital cities. This will include a focus on de-risking the local investment space and proving concept to tap into the economic potential of often overlooked population groups, enterprises and localities.
In particular, the event will call on development partners to commit to three key actions with proven acceleration potential for inclusive and resilient local economic development:
- Localize a critical volume of public and private investment for secondary and tertiary infrastructure development, to help stimulate local economies, and provide expanded access to essential services and opportunities for better jobs;
- Establish flexible capital vehicles for local investment which can serve as last-mile investors to de-risk the local investment climate and lay the groundwork for other investors and stakeholders – both public and private - to enter with confidence; and
- Accelerate investment in financial inclusion, including through digital pathways, in order to support poverty reduction and women’s economic empowerment, and expand employment through small and medium enterprises, especially for young people.
The side event will offer the opportunity to explore some of the following questions:
- What are the primary barriers to mobilizing domestic resources for investment in local economies? How can these barriers be overcome?
- What financing mechanisms and tools exist to encourage greater investment at the local level? Do the right capital vehicles for local investment exist?
- How can ODA help to unlock and leverage private and public domestic resources for inclusive growth?
- How can public and private institutions innovate in mobilizing domestic resources for development? How can we better incentivize the domestic financial sector to increase lending to small and medium enterprises?
- How can greater use of appropriate technology accelerate financial inclusion and yield cost savings that free up domestic resources for priority uses?
The event will adopt a Davos-style format in which panelists will actively engage with the audience. Panel speakers include:
- H.E. Mr. Jean-Francis Régis Zinsou, Ambassador, Permanent Representative of Benin to the United Nations and Global Coordinator of the LDC Group;
- Ato Getahun Nana, Vice Governor, Financial Stability Cluster, National Bank of Ethiopia;
- Mr. Denis Bandisa, Director of Governance and Service Delivery, Prime Minister’s Office, Ministry of Regional Administration and Local Governments, Government of Tanzania;
- Ms. Anna Ryott, Managing Director, Swedfund;
- Mr. Walt M. Macnee, Vice Chairman, MasterCard Worldwide;
- Mr. Patrick Walsh, Director for Global Partners Department, European Investment Bank;
- Mr. Mercus Chigoga, Head of Personal Banking, NBS Bank, Malawi;
- Ms. Judith Karl, Executive Secretary, UNCDF.
Moderated by: Ms. Nicola Harrington, Deputy Director, OECD Development Centre.
For other information about the conference check the Financing for Development (FFD3) website.