Perspectives 2019 2020 Public Sector

26 Sustainable Sovereign Financing: Optimizing Resource and Risk Allocation The Current State of Play Africa’s SDG funding needs is estimated to be $1.5 trillion per year, much of it in infrastructure, against modest public and private capital flows of approximately $0.2 trillion. This leaves a substantial annual financing gap of $1.3 trillion, more than 50% of the global gap 2 . Mounting environmental, social and economic pressures will further compound the effect, pushing up the already significant opportunity costs in delaying investments into the SDGs. Annual financing of $2.5 trillion required to bridge SDG funding gaps (SDG investment needs and SDG investment flows p.a, $ trln) Governments Development Finance Institutions ODA Export Credit Agencies Sovereign Wealth Funds FDI Commercial Banks Institutional Investors Donors Alternative Investors (e.g. PE firms) Capital Flow Sources Investment needs Public capital flows Private capital flows Investment gaps 6.0 1.6 1.9 2.5 Source: UNEP Finance Initiative: Rethinking Impact to Finance the SDGs