Russell Curtis from Durban Investment Promotion - UN World Investment Forum Sustainable Development RSS Russell Curtis from Durban Investment Promotion - UN World Investment Forum Sustainable Development2016-10-18 Russell Curtis from Durban Investment Promotion was an invited panel speaker in a discussion about "Promoting Investment in Urban Development" at the United Nations Conference on Trade and Development (UNCTAD) World Investment Forum, Nairobi, 17 - 22 July 2016.
The event highlighted, amongst other topics, the importance of the still relatively new global Sustainable Development Goals (SDGs), and the key role of investment promotion and facilitation in working towards achieving these goals (see pictogram below). A target of the conference was to gather knowledge, market intelligence, and alternative means to achieve foreign direct investment (FDI) within the realms of the SDGs. This being contextualised within a background that traditional investment promotion strategies are not always enough for the ever changing investment world environment, and new alternative strategies must be developed. The panel considered two key questions: What challenges do cities face in achieving sustainable development, and what role is there for private investment, including FDI , in addressing these challenges? Private financing could fill the funding gap for many urban SDGrelated projects, including green infrastructure. At the same time, investors differ in their needs and capacity and vary between sectors, so multiple forms of private capital will be necessary to support sustainable urban development. Sustainable cities are forged through successful partnerships between public, private, and civil society stakeholders, specifically municipalities, environmentally active communities, and the private sector. This demands adapted city management. How can cities effectively attract investment for sustainable development, including in SDG sectors? For private finance to be a solution, investment products, public policies, and civic support need to be created around efforts that combine an interest in sustainability, the importance of cities, and the multiple potential sources of capital. There are at least three conditions of private finance would have to be met: a market for urban SDG investment projects, good return on investment, and limited risk. Curtis proposed the following during the discussions:
Curtis emphasised that in order to implement the SDGs it is important to start with the likes of Goal #17: 'Partnerships for the goals' in order to enable a direct project focus to jointly deliver on other key SDGs such as #7 'Renewable energy', #8 'Good jobs and economic growth', #9 'Innovation and infrastructure', #10 'Reduced inequalities' and #11 'Sustainable cities and communities'. There are also other SDGs which are already well aligned with current eThekwini Metro priorities, leading to partnership projects (in SDGs #6 'Clean water and sanitation', #13 'Climate action', and #15 'Life on land'). The UN organisers in turn advised the following for Metro leadership to take note of: "Cities have a range of options to attract and mobilise investment in SDG sectors, including:
»» Establishing municipal corporations and municipal development funds »» Borrowing from capital market via municipal bonds »» Obtaining funds from institutional investors (e.g. pension funds) and equity markets
Further background papers on aspects of this topic from the UN's perspective are available at: UNCTAD's Global Action Menu for Investment Facilitation (at http://investmentpolicyhub.unctad.org/Blog/Index/53) Investment Policy Framework for Sustainable Development (at:http://investmentpolicyhub.unctad.org/ipfsd). |
Russell Curtis from Durban Investment Promotion - UN World Investment Forum Sustainable Development
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