The joint ability to mobilise finance is decisive if we are to achieve the global goals. The traditional sources of finance are insufficient: the amount invested must go from billions to trillions. This makes the private sector and private finance essential.
To decrease poverty, an inclusive economic growth is required. Economic growth gathers speed when decent jobs are created on a broad front. Then large parts of the workforce are included, and even the poorest are given the opportunity of employment and a better standard of living. At present, nine out of ten jobs in developing countries are generated in the private sector, with 80 per cent of these in small and medium-sized companies.
Inclusive growth must be created without damaging ecosystems, without having a negative impact on the climate, without increasing income disparity and without supporting anti-democratic forces. The great opportunity is that sustainable businesses have the ability to do this, and they can make a positive contribution to society in all these areas.
Development Finance Institutions like Swedfund, have a crucial role in helping increase the number of sustainable businesses in the world’s poorest countries. Businesses which lay the foundations for increased employment, tax revenue and access to renewable energy. Creating jobs requires long-term and sustainable investments which contribute to responsible businesses. The DFIs mobilize private capital for under-financed markets – when the DFIs provide capital, this reduces the risk for other investors, enabling them to invest as well.
Swedfund invests in large companies and in small and medium-sized businesses, and we encourage female business and companies which contribute to climate-smart solutions. Swedfund and other DFIs are making a difference. Our investments and how we manage these investments lay the groundwork for viable and sustainable companies in countries and regions where the needs are the most urgent. This generates concrete results which help accelerate the implementation of the UN’s sustainable development goals.