Post by hasan77 on Feb 15, 2024 1:13:58 GMT -4
As much as 97 percent of total private capital investments mobilized by multilateral lending institutions — such as the European Investment Bank (EIB) — occur in middle- or high-income countries. S&P said the failure to mobilize more investment in some of the world's poorest countries is due to fears of higher underlying investment risks in emerging markets. At the same time, there has been a modest but continuing reduction in sovereign capital support from governments for infrastructure development projects.
S&P said it therefore expected seek private sector financing to plug the gap. Consequently encouraging private sector investors to engage in a wider spectrum of risks and geographies will be 'critical' for meeting the SDGs, the report concludes. Consequently encouraging private Canada Email List sector investors to engage in a wider spectrum of risks and geographies will be "critical" for meeting the SDGs, the report concluded. It also argued a number of mechanisms exist that could help increase capital flows into emerging markets, such as credit enhancement instruments which offer a menu of risk and return options for investors.
But it also warned such measures will not be sufficient on their own. In order to increase private sector mobilization of capital, it explains, multilateral lending institutions likely would need to support private investors through advisory services and policy reform. It also suggested multilateral development banks will have to assume the riskiest part of investments, particularly in the early stages of projects. "We believe that to engage the private sector on a larger scale, it's important to build a project pipeline to justify the costs of entering a new market or segment," said report author Michela Bariletti, analytical manager for infrastructure ratings at S&P.
S&P said it therefore expected seek private sector financing to plug the gap. Consequently encouraging private sector investors to engage in a wider spectrum of risks and geographies will be 'critical' for meeting the SDGs, the report concludes. Consequently encouraging private Canada Email List sector investors to engage in a wider spectrum of risks and geographies will be "critical" for meeting the SDGs, the report concluded. It also argued a number of mechanisms exist that could help increase capital flows into emerging markets, such as credit enhancement instruments which offer a menu of risk and return options for investors.
But it also warned such measures will not be sufficient on their own. In order to increase private sector mobilization of capital, it explains, multilateral lending institutions likely would need to support private investors through advisory services and policy reform. It also suggested multilateral development banks will have to assume the riskiest part of investments, particularly in the early stages of projects. "We believe that to engage the private sector on a larger scale, it's important to build a project pipeline to justify the costs of entering a new market or segment," said report author Michela Bariletti, analytical manager for infrastructure ratings at S&P.