The United Nations estimates that between $3 trillion and $5 trillion is needed annually to achieve the Sustainable Development Goals (SDGs) by 2030. For Africa alone, the annual financing gap stands at $194 billion, representing about 7% of the continent’s GDP. Addressing this shortfall, the Global Compact Network Kenya (GCNK), in collaboration with the Principles for Responsible Investment (PRI), FSD Africa Investments (FSDAI), and the East Africa Private Equity & Venture Capital Association (EAVCA), convened a high-level roundtable to discuss how to accelerate sustainable finance in emerging markets and developing economies through local capital mobilisation.
The roundtable, held on July 22, 2025, in Nairobi, Kenya, brought together key stakeholders who agreed on the increasing urgency to scale up sustainable financing. The discussions acknowledged the mounting pressures from climate change, biodiversity loss, widening inequality, and diminishing international aid, all of which highlight the need for local solutions and capital engagement.
Judy Njino, Executive Director of GCNK, stressed the vital role of the private sector and investors in bridging the financing gap. She pointed out that only 35% of the SDG targets are currently on track or showing moderate progress, while nearly half are progressing too slowly and 18% have regressed. With limited fiscal space and falling development assistance, she emphasized the need to ensure that local businesses are adequately prepared and aligned to absorb and deploy this capital effectively.
David Atkin, CEO of PRI, echoed this sentiment by highlighting the importance of a sustainable and efficient financial system for generating long-term value. He emphasized that responsible investment practices should become standard, rewarding approaches that benefit both society and the environment.
Key conclusions from the meeting included a shared recognition of the need for stronger collaboration among the private sector, investors, and development institutions. There was also a call to shift toward real-world financial solutions that directly address local challenges. Furthermore, the growing interest in instruments like green bonds and impact investments was noted, signaling a promising path forward to fund sustainable projects while offering competitive returns.
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