SEVILLA, SPAIN (1 July) — Global finance ministers today underscored the urgent need to scale up private sector investment, strengthen domestic markets and adopt pragmatic, tech-driven solutions to expedite sustainable development during a high-level panel of the fourth International Conference on Financing for Development.

World leaders are gathered in Sevilla, Spain, this week to discuss and agree on ways to mobilize investment for sustainable growth.  During a round-table talk this morning on “Leveraging private business and finance”, speakers shared national strategies to close the financing gap and support small and medium-sized enterprises.

Spotlight on Africa

Delivering the keynote address, Mahmoud Ali Youssouf, Chairperson of the African Union Commission, emphasized the importance of private sector engagement in Africa’s development, noting private actors have already committed to mobilize at least $1 trillion in investment towards critical infrastructure development and industrialization across the continent by 2030.  Deep and comprehensive reforms of the global multilateral financial system are urgently needed to unlock this potential.  “Such reforms must be anchored in a twenty-first-century global financial architecture that supports equitable growth and revitalizes the multilateral trading system,” he stressed.

Mr. Youssouf underscored that Africa's sustainable development depends on the collective commitment of Governments, international partners and a proactive private sector.  “Together, we can transform today’s pressing challenges into concrete and lasting solutions that improve the lives of our people,” he concluded.

Retselisitsoe Matlanyane, Minister for Finance and Development Planning of Lesotho, highlighted the complex and overlapping challenges that many developing countries — including hers — face in transforming their food systems.  Both prolonged droughts and devastating floods have significantly hampered agricultural productivity and exacerbated food insecurity across the country.  To address these issues, Lesotho is prioritizing strong collaboration between the public and private sectors to scale up investment in key areas of development.  “We look to multilateralism as a critical tool for enabling partnerships between countries and for fostering cooperation among global institutions,” she said.

Support for Small and Medium-Sized Businesses

Ms. Matlanyane underscored the importance of strengthening domestic financial markets to mobilize resources internally.  As part of its inclusive growth strategy, Lesotho is actively supporting small and medium-sized enterprises, with a particular emphasis on those owned by women.  She pointed to current initiatives aimed at improving access to financing for these businesses as a key step towards economic resilience.  Lesotho is also working to enhance investment protection legislation to attract greater private sector engagement.  In the green economy, the Government is redesigning its tax-incentive structures to draw in climate-conscious investment.  At the same time, fiscal policy is being realigned to promote climate-smart economic architecture that can support sustainable growth.  In addition, the Government is placing renewed focus on tapping into diaspora investments.  “Development is for all and must be pursued by all,” she stressed.

Echoing the urgent need to strengthen domestic financial markets and expand access to opportunities for small and medium-sized enterprises was Situmbeko Musokotwane, Minister for Finance and National Planning of Zambia.  “These businesses are the engines of our economy, yet they remain largely underserved,” he said, emphasizing their critical role in job creation and inclusive economic growth.  He called for the development of innovative financial instruments and structures to unlock investment in key sectors, such as climate adaptation, green infrastructure and affordable housing — areas essential to building resilience and improving quality of life for communities across Zambia and the continent.

Mr. Musokotwane stressed that the private sector must no longer be viewed as a peripheral player, but as a central and committed partner in the journey towards shared prosperity, human dignity and long-term sustainable development.  “Only through meaningful collaboration between Governments and private investors can we deliver transformative outcomes for our people,” he concluded.

Neal Rijkenberg, Minister for Finance of Eswatini, shared his Government’s bold efforts to restore fiscal discipline and stimulate economic growth.  He explained that Eswatini undertook an aggressive strategy to reduce its fiscal deficit from 7.5 per cent to 2 per cent.  “We worked very hard to increase revenues,” he said, highlighting the difficult but necessary steps taken to stabilize public finances. As a result, in 2023, growth reached 5 per cent, and projections for 2025 indicate an expected increase to 7.9 per cent.  “We are definitely on a very positive trajectory,” he affirmed.

Private Sector as Key Driver of Economic Transformation

Mr. Rijkenberg credited the private sector as the key driver behind this transformation.  “It is the private sector that really changed the game,” he noted, emphasizing that robust growth is enabling the Government to responsibly take on more debt and finance long-term development goals.  No fiscal or development strategy can succeed without getting growth right, he said, stressing that growth is impossible without private sector confidence.  “Until the private sector feels safe and comfortable, we are simply not going to make meaningful progress,” he warned.  To further attract investment, Eswatini is in the process of establishing a sovereign wealth fund aimed at unlocking co-investments and signaling long-term stability to external partners.  The country has also broadened its tax base, a challenging task in the absence of economic expansion.  “Trying to increase taxes without growth is very brutal,” he said.

Boris Titov, Special Representative of the President of the Russian Federation for Relations with International Organizations for Achieving the Sustainable Development Goals, affirmed the Russian Federation’s openness to international cooperation and knowledge-sharing in support of the Sustainable Development Goals (SDGs).  Strengthening micro-, small and medium-sized enterprises is essential for generating employment, driving investment and increasing tax revenues — yet these vital economic actors are often overlooked in development strategies.  The Russian Federation has developed profitable, easy-to-use digital platforms to support micro-, small and medium-sized enterprises; the Government actively provides these tools to businesses. 

Role of Digital Platforms 

“Digital platforms play a critical role in fostering inclusive growth,” he said, underscoring their potential for broad replication.  These platforms have already been introduced in countries such as Kyrgyzstan, where they have helped double Government revenues.  He suggested that similar support could be extended to countries like Lesotho and Zambia.  “This is the kind of technology and experience Russia is ready to share with other Member States,” he stated.

Turning to the broader financing-for-development landscape, Mr. Titov warned of the growing urgency to close the estimated $4 trillion global financing gap.  “Without bold and coordinated action, achieving the Sustainable Development Goals by 2030 will remain out of reach,” he cautioned.  In light of current global trends and constraints, he proposed that the international community begin designing a pragmatic post-2030 development agenda — one that focuses less on utopian ideals and more on confronting the most immediate and critical challenges. “We must prioritize the most pressing issues and set realistic, impactful targets to ensure meaningful progress,” he concluded.

Antonio Pinheiro Silveira, Vice-President for the Private Sector at the Development Bank of Latin America and the Caribbean, moderated this morning’s discussion while Mary Beth Goodman, Deputy Secretary-General, Organisation for Economic Cooperation and Development (OECD), and Eric Pelofsky, Vice-President, Rockefeller Foundation, participated as discussants.