SDGs As Investment Opportunities

28 Jan 2020 by Staff - Water Diplomat
LONDON, United Kingdom

Achievement of the Sustainable Development Goals (SDG) by 2030 is a challenge but represents huge investment opportunity for the private sector through 2030, according to a new report from Standard Chartered Bank.

The “Opportunity2030” study shows the funding need and the scale of required investment in order to achieve SDG 6 (water for all), SDG 7 (access to power), and SDG 9 (improved infrastructure) by 2030, breaking down the investment opportunity by SDG and by country.

The report indicates that there is overall private sector investment opportunity for about $10 Trillion USD, across all SDGs. Water and sanitation investment opportunity totals about $126 Billion USD, principally in China, India and Indonesia. Nigeria, Kenya, Ghana, Uganda, and Zambia combined could attract as much as $10.5 Billion USD.

Standard Chartered emphasises that this is the private-sector opportunity and that it meets only about 40 percent of the total funding required. This quantum takes into consideration proper maintenance of existing assests and allows for population growth and new demand on resources. The remaining funding requirement is expected to be met from public funds.

According to the report, Zambia presents a good opportunity for water investment: 43 percent of the population lacks access to clean water and sanitation and there is a requirement to fund as much as $700 Million USD to close the gap.

Bill Winters, Group Chief Executive at Standard Chartered, said:

“The UN Sustainable Development Goals are amongst the most ambitious projects humanity has ever attempted. For the goals to be met, the private sector must play a central role in deploying capital to get projects off the ground. Currently, not enough capital is reaching the countries that need it the most. With the UN’s 2030 deadline for achieving SDGs just 10 years away, the time to act is now.”

“Opportunity2030: The Standard Chartered SDG Investment Map is a macroeconomic study that draws on global data sources and indicative private-sector participation rates to provide companies, institutional investors and other stakeholders with an overview of where their investments could have the greatest impact. It spans 15 of the world’s fastest-growing economies and estimates the potential private-sector investment opportunity to contribute to three of the most investment-ready UN SDGs (6,7 and 9).”