Unctad: Africa needs Sh1,290 trillion to meet SDGs

Sustainable Development Goals

What you need to know:

Between 2011 and 2013, Africa’s annual average external debt stock amounted to $443 billion compared to $303 billion in 2006 to 2009.


Dar es Salaam. Africa needs $600 billion (about Sh1,290 trillion) annually to meet the requirements of the United Nations (UN) sustainable development goals (SDGs), a new report shows.

The SDGs, adopted by the 193 members of the UN general assembly states on 25 September 2015, include ending poverty and hunger, improving health and education and making cities more sustainable, combating climate change, and protecting oceans and forests by the year 2030.

According to a new report by the United Nations Conference on Trade and Development (UNCTAD), African countries need $600 billion (about Sh1290 trillion) each year to realise the goals.

The report calls upon the continent to realise the finds through Public Private Partnerships (PPPs) instead of acquiring new foreign debts.

Between 2011 and 2013, Africa’s annual average external debt stock amounted to $443 billion compared to $303 billion in 2006 to 2009.

Speaking in Dar es Salaam yesterday, an economic affairs officer from UNCTAD, Ms Claudia Roethlisberger said the PPPs have the potential to provide access to additional sources of funding and financing. The move was possible by leveraging existing resources with those of the private sector that would lead to operational efficiency and hence improvement in quality of public services.

“Because of the scarce availability of public sector funds, leveraging existing resources with those of the private sector is a popular modality of alternative financing,” she said.

Through these partnerships, according to the report, governments could enjoy economies of scale ranging from specialized skills, innovation from the private sector to technologies.

The partnership would therefore be attractive instruments for developing countries seeking to improve the quality and competitiveness of their services base such as telecommunication which required high level of expertise.

Moreover, partnerships in question would allow sharing the risk of a project between the public and private sectors, the report explains.

“When risks are allocated adequately, depending on the management of risk capabilities, the overall project cost for the Government could be reduced,” Ms Roethlisberger told stakeholders.