Since the SDGs were announced, the international development community has been looking at ways to tap into new funding venues, attract the private sector and build relevant private-public sector partnerships.
From basic financial services to board rooms, strengthening women’s role in finance is one of the keys to boosting economic growth.
In every country, women and men alike need access to finance so that they can invest in their families and businesses. But today, 42% of women worldwide – about 1.1 billion – remain outside of the formal financial system, without a bank account or other basic tools to manage their money.
Africa’s urban areas are booming, experiencing a high urban growth rate over the last two decades at 3.5% per year. This growth rate is expected to hold into 2050. With this growth, street food is going to become one of the most important components of African diets. The formal sector will just not be able to keep up!
Enter my company, Musana Carts, which tackles the #FoodRevolution challenge from the end of the food value chain. Musana Carts, which currently operates in Uganda, streamlines and improves the production and consumption of street food.
Why did we decide to focus on street food?
Despite the illegal status of unlicensed street food vendors, who are regularly evicted from markets, street vending is an age old industry. Low income families spend up to 40% of their income in street food (Nri).
People eat street food because it is affordable, abundant, delicious and has a local and emotional flavor. Street food plays a key role in the development of cities. It is the one place where the posh and the poor from all walks of life meet and forget their social differences for the few seconds it takes to savor a snack.
Street foods tell a story. They capture the flavor of a nation and the pride of a tribe: in Uganda, the rolex, a rolled chapatti with an omelet, has been named one of the fastest growing African street foods. The minister for tourism made it the new Ugandan tourism product.
Let’s be honest. The Middle East and North Africa is burning, and in some areas it is literally burning. Conflict and fragility have long warped what once was the cradle of civilization and the inspiration for the many inventions we can’t live without today. However, in the midst of that fire hope rises, a driver of change that is transforming the ugly reality into a bright future.
After I fled the war in Iraq in 2006, I was pessimistic about what the future was holding for that region. Year after another, the domino-effect of collapse became a reality that shaped the region and its people. Yet, fast-forward to 2017, I have witnessed what I never thought I would see in my lifetime: the new renaissance in the Middle East and North Africa.
There, the positive vibe was all around; no negativity, no pessimism. Instead there was a new sense of optimism and enthusiasm, hunger for change, and the will to take the region to a whole new future, away from conflict and the current norm of pessimism.
Em todo o mundo, bancos de desenvolvimento estão avaliando sua atuação e observando onde esses esforços têm mais impacto. O tema foi objeto de uma reunião organizada pelo Banco Mundial e pelo Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Os bancos de desenvolvimento se tornam peças cada vez mais fundamentais à medida que o mundo busca angariar os recursos necessários para atingir os Objetivos de Desenvolvimento Sustentável. Esses bancos podem ajudar a atrair o setor privado e solidificar as parcerias entre os setores público e privado, principalmente em matéria de financiamento de infraestrutura.
No entanto, o uso abusivo de bancos de desenvolvimento pode gerar riscos fiscais e distorções no mercado de crédito. Para evitar essas armadilhas, os bancos de desenvolvimento precisam de uma missão bem definida e devem operar sem influência política, concentrar-se no combate às grandes falhas de mercado, focar as áreas onde o setor privado não atua, monitorar e avaliar intervenções e realizar os ajustes necessários para garantir o impacto almejado. Também precisam ser transparentes e responsáveis.
Earlier this month, development banks from around the world took stock of where they stand and where they see their efforts having the greatest impact at a meeting organized by the World Bank and Brazil’s development bank, BNDES.
As the world struggles to find funds to meet the Sustainable Development Goals, development banks can be instrumental in narrowing that gap. They can help to crowd-in the private sector and anchor private-public sector partnerships, particularly for infrastructure financing.
However, misusing development banks can lead to fiscal risks and credit market distortions. To avoid these potential pitfalls, development banks need a well-defined mandate, operate without political influence, focus on addressing significant market failures, concentrate on areas where the private sector is not present, monitor and evaluate interventions and adjust as necessary to ensure impact, and, finally, be transparent and accountable.
Two themes characterized the discussion at the meeting: how to leverage private capital and create new markets. To support Small and Medium Enterprises (SME) finance, development banks use partial credit guarantees while letting private lenders originate, fund, and collect on credit. In markets with limited competition, development banks support the creation of an ecosystem of specialized Micro, Small, and Medium Enterprises (MSME) lenders to which they provide a stable funding source.
Finance fuels economic growth and development. Yet, it is also clear that traditional funding sources – public finances, development assistance or banks loans – will not be sufficient to finance the Sustainable Development Goals.
We estimate that the amount of infrastructure financing covered by the private sector could be more than doubled, if countries harness the full potential of local capital markets.
At the World Bank Group, we are committed to marshal our expertise to increase the use of capital markets for investment financing. Helping countries develop government debt markets is vital to our goals of eliminating extreme poverty and boosting shared prosperity.
Urgent action is needed to mobilize, redirect and unlock trillions of dollars of private resources to ensure global growth and shared prosperity.
Since 1956, the International Finance Corporation (IFC), the World Bank Group’s member focused exclusively on the private sector, leveraged $2.5 billion in paid-in capital from its shareholders to invest over a trillion dollars for private sector development. IFC’s 60 years of experience has demonstrated the private sector’s ability to create innovative, commercially viable solutions that deliver development impact.
“A year ago, we all signed up to the Sustainable Development Goals. The only way to achieve these goals is if private capital funds them and private business implements them,” said Gavin Wilson, CEO of IFC’s Asset Management Company (AMC) during the World Bank Group/IMF Annual Meetings 2016.
“That’s why we came up with the phrase ‘Billions to Trillions’ last year with our multilateral institutions in the run-up to the Addis conference on financing for development,” he added.
Since it opened in 1914, the Panama Canal has been one of the world’s most important trade assets and a marvel of engineering. Its expansion has doubled the canal’s cargo capacity, adding a new lane and bigger locks that will shake up shipping routes and make seaborne trade less costly and more efficient.
Panama, already projected to be Latin America’s fastest-growing economy over the next five years, was the big winner when the expanded canal opened its locks on June 26. New port projects and related logistics hubs are in the works to attract global manufacturers and further enhance the country’s competitiveness.