Joint Fund "historical capital increase" to help sustainable development
Pictures: © Brent Stirton/Getty Images for FAO Local women gathered by a river in Mucheni, Zimbabwe.
United Nations Joint Fund for Sustainable Development Goals today announced an additional investment of $54.5 million for projects in five countries in an effort to get the Sustainable Development Goals back on track.
Hiro Mizuno, UN Special Envoy for Innovation Finance and Sustainable Investment, said: "The fund is able to bridge the gap in investments needed to donate and make impacts." The fund accelerates corporate development by leveraging the power of the market, providing "sustainable investment models, empowering communities, and providing a clear path to self-sufficiency."
In a world that is still plagued by the coronavirus pandemic, these investments will help address a range of challenges in the era, from health to youth empowerment to climate change.
Among the proposals submitted from more than 100 countries, Kenya, Madagascar, North Macedonia, Suriname and Zimbabwe stood out because of their most influential and well-prepared for investment absorption.
Resident Coordinator leads
Under the leadership of the United Nations Resident Coordinator, the implementation of the investment plan will promote the UN’s footprint in these five countries - leading the United Nations, government, civil society and private sector investors in a new generation of cooperative actions.
In Kenya, investments in the United Nations fund form a platform to encourage healthy sexual and reproductive habits and HIV prevention through “development of impact bonds”; while Madagascar will use a variety of financial tools, including a newly established sovereign fund, to fund renewable energy projects and expand access to affordable and sustainable energy.
The newly established green financing mechanism in North Macedonia will provide underserved households and businesses with the help of their transition to renewable and efficient energy.
Meanwhile, Suriname will implement an innovative guarantee mechanism to simplify credit channels, business incubators and farmers' cooperatives to develop a sustainable and resilient value chain for the country's pineapple industry.
Zimbabwe will focus on empowering women and youth to participate, launching a renewable energy fund to kick off the development of renewable energy systems and infrastructure in the country.
Important Investment
This is less than a year after the United Fund’s first investment of US$41 million in four transformation projects in Fiji, Indonesia, Malawi and Uruguay, the fund reinvested its sustainable development project.
Last year, the fund added a $17.9 million project in Papua New Guinea. With the addition of these five new projects, the catalytic portfolio of the SDG Joint Fund will grow to $114 million.
The portfolio is expected to use $5 billion to promote the Sustainable Development Goals in the 10 countries involved.
Make real progress
Although the catalytic portfolio has been established for less than a year, it has achieved fruitful results.
in Indonesia, it supports the issuance of the first "Social Sustainable Development Bond" in Southeast Asia for US$584 million, and has cooperated with Indonesian Mandiri Capital to create the "Indonesian Impact Fund".
Fiji's plan supports its sustainable business in key marine environments, including providing preferential financing to marine conservation companies and piping services for waste management and organic fertilizers.
Sustainable Model
Sustainable Development Goals Joint Fund is also committed to working with partners and donors to mobilize more resources to fund successful proposals submitted in Barbados, Ghana and Rwanda.
The United Nations Joint Fund for Sustainable Development Goals was established by the United Nations General Assembly and is a multi-partner trust fund that supports Member States by reducing investment risks and accelerating the achievement of the Sustainable Development Goals.
The goal is to allocate $1 billion in annual grants to drive more investment for sustainable development by the SDG Joint Fund by the 2030 SDGs.
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