Climate change is the existential crisis. As its effects are felt more broadly, we increasingly see how all aspects of society are being impacted: the environment, the economy, health care, transportation and immigration. Commitments to net zero are being across all sectors of the economy, but are we going as far, deep and fast we need to?
The COVID-19 pandemic has wreaked havoc on global development. Since the pandemic, the annual funding gap
to achieve the Sustainable Development Goals (SDGs) has risen from an estimated $2.5 trillion to a staggering $US4.2 trillion, while official development assistance budgets have contracted. It has never been more urgent to catalyze private investment at scale towards creating a climate resilient, gender inclusive, and economically sustainable world.
As COP26 moves into its second week, there is a clear consensus that we are running out of time to tackle what’s been described as the greatest challenge of our time. Yet there is optimism in Glasgow. We know it will take major change — and major investment — to truly address climate change. Consensus abounds that resources from both public and private sectors must be brought to bear in a meaningful way.
The critical role of development finance institutions (DFIs) in helping to achieve the Sustainable Development Goals is well documented. As a DFI, FinDev Canada’s mission is impact-driven as we seek to deploy and mobilize capital to promote inclusive private sector growth through market development and job creation in our target regions. Now, how do we actually ensure that our development impact targets are met, not only today, but throughout the life of our investment and beyond?
When asked which medal they would like to win after a competition, most people would probably choose gold. Fair enough, but at times, for instance at the beginning of an athlete’s career, it might be better to receive a silver medal because it recognizes achievement while pointing to growth and improvement ahead.
That’s how we at FinDev Canada are looking at an independent analysis just completed that examined our Development Impact Framework. It looked at how closely our policies and practices under the Framework align with the global Operating Principles for Impact Management.
Before the pandemic struck, many African countries had been enjoying above average economic growth fuelled by higher commodity prices, better governance, a rising middle class, and foreign and domestic private sector investment responding to the huge potential in Africa’s increasingly better educated and dynamic youth. Underpinning much of that growth was the digital revolution that swept the continent in the past decade. By leapfrogging traditional communications technologies, Africans began to experience the benefits of a digital economy.