Financing for development (final project) summarydocx

Financing For Development – Final Project SUMMARY This is a summarized breakdown on how SDG 17 can be leveraged to end poverty and inequality in Africa, targeted at government bodies across Africa, The SDG Center for Africa and the general public. This publication points out the major obstacles to development in the region as the lack of policy consistency and the lack of strong institutions. Possible solutions have also been pointed out including the establishment of a Regional Development Plan for all African countries, followed by the establishment of localized Development banks across all African nations to provide stability to investment climate among other things.

A financing solution has been proposed, which uses An Anchor Borrowing Programme (ABP) that is scalable across Africa. It involves a free-market driven ‘Cash for Produce’ or ‘Cash for Products’ model coordinated by the country’s development bank (as proposed above), with certified buy-back guarantee.

This model involves an interest-free financing platform open to Local Farmers and Local Manufacturers (LFLMs), who will be required to pay back in specified amount of produce or product. The Proposed Development Banks then serve as halfway houses between the LFLMs and the market; providing market oversight at both the domestic level (to guarantee and oversee subsidized sales of the products) and the international level (to link products with external markets).

This ABP model is a possible innovative financing solution that has the potential to inspire financing, market-driven public-private partnerships (domestic and international), if implemented innovatively. It is a model that can be scaled up across Africa with the potential to provide several multi-sectoral solutions and guarantee development impacts that cut across SDGs 1, 2, 3, 8, 10, 12 and 13.

The financing model for the ABP Scheme was designed to cut across the IDA Private Sector Window Finance (as pioneer investors and source of catalytic finance); Private Sector Finance (incentivized by IDA PSW finance and guarantees, as well as diversified opportunities for return on investments); Public Sector Finance (useful for mobilizing additional funds for critical infrastructure investment.

The perceived current hindrances to unlocking Africa’s financial investment opportunities which include (i) the absence of localized Development banks (ii) the Infrastructure and Infrastructure Investment gaps (iii) the current Official Development Assistance (ODA) financing model (iv) The current IDA PSW financing model which may impose restraints on funding allocations, were also highlighted in the publication and solutions proffered.