Moving the money - New platforms and instruments

Investment platforms and instruments can play a critical role in addressing the challenges to channeling resources to countries and sectors most in need. New platforms and instruments need to tackle specific market failures and spur the engagement of relevant stakeholders to be effective. For example, new instruments can strengthen risk sharing between the public and private sectors in situations where financial markets do not provide solutions. Such instruments will:

Building a project pipeline

The lack of investment-ready projects is a serious challenge for attracting and channeling private investments to countries and sectors most in need. Developing investment-ready projects require significant planning and capacity during the pre-investment and implementation phases that address the financial, legal, technical and sustainability-related challenges associated with a project. Identifying a feasible risk-sharing mechanism at the development phase is critical to ensure that a project will be viable for investors.

Identifying obstacles to investment

Channeling investments to the countries and sectors most in need is affected by a range of challenges, including lack of financing and technical capacities. The GISD Alliance Members have identified several internal and external challenges that impact the allocation of private investments for sustainable development. This was done in close cooperation with relevant stakeholders in a number of pilot countries (Colombia, India, South Africa). Main findings include: