Africa will soon be home to the largest workforce in the world. Vast numbers of people will live and work in urban settlements that don’t yet exist. They will need housing, food, water, energy, health care, education and community. Yet with woefully inadequate infrastructure today, Africa will have to turn to a more inclusive economic development and growth model.
The Sustainable Development Goals were designed in part to address the needs of these people and people like them around the world. However, with little substantive movement in achieving the SDGs since ratification in 2015, the capital gap required to meet these goals has widened into the trillions. In Africa alone, the gap is estimated at more than $1.0trillion per year.
The challenges in transforming economic models run deep. Public funds currently contribute less than 1% of the projected capital required to achieve the sustainable development goals, while private capital remains at a loss as to how to address the 2030 goals in a manner consistent with the traditional investment dynamics, behaviours and biases that drive private allocations.