The International Business Forum (IBF), a pivotal component of the 4th International Conference on Financing for Development (FfD4), officially opened today in Seville, Spain, with a strong call from United Nations Secretary-General António Guterres for global business leaders to intensify their commitment to sustainable development. The Forum, which runs concurrently with FfD4 until July 3, serves as a central platform for mobilizing private finance and investments to achieve the Sustainable Development Goals (SDGs).

Addressing a high-level gathering of Heads of State, ministers, CEOs, and global business leaders at the opening, Secretary-General Guterres underscored the private sector’s indispensable role in global development. “Development is everyone’s business. And the private sector is an essential partner in helping countries climb the development ladder, and achieve the Sustainable Development Goals,” Guterres stated. He emphasized that businesses are not merely engines of jobs and economic growth but also propel the innovation, technology, and investment crucial for development.

The UN Chief highlighted the challenging global environment in which the Forum is convening, noting rising trade barriers, macroeconomic risks, decimated aid budgets, and growing mistrust. He pointed out that the financing gap for the SDGs has now ballooned to $4 trillion annually, a stark increase from a decade ago when the world first convened to discuss financing for development in Addis Ababa. Despite the recognition then that achieving the SDGs was impossible without mobilizing private capital at scale, Guterres noted, “One decade later, we continue to fall short.” He cited a 35 percent drop in infrastructure investment in developing countries last year, including in critical sectors like renewable energy, water, and sanitation, alongside a two-year decline in foreign direct investment that largely bypasses Least Developed Countries.

Guterres stressed the urgent need to “change course,” beginning with the commitments outlined in the recently adopted Sevilla Commitment document of FfD4. He highlighted specific actions within the Commitment aimed at unlocking private sector investment, including strengthening mechanisms for blending public and private capital, new approaches to manage currency risk in frontier markets, and a call to review financial regulations to ensure they support, rather than hinder, institutional investors in sustainable development projects. The IBF is organized by the FfD4 Business Steering Committee, an unprecedented coalition of major global business organizations and UN-affiliated initiatives coordinating private sector contributions to the conference.

By: TPA News Desk | editor@thepointafricanews.com