A vibrant panel discussion with the participation of high-level representatives of governments, development finance institutions, academia, and the private sector elaborated on the potential of multi-stakeholder partnerships for leveraging financing for ISID.
Panelists voiced their thoughts on topics ranging from infrastructure development and capacity-building all the way to leveraging private investment. Special attention was also paid to inclusive and sustainable industrial development in the context of Ethiopia, with contributions coming from discussants such as Ethiopian ministers and business people. Moderator Todd Benjamin encouraged participants to consider what developing countries themselves can invest in finance and achieve ISID. Jeffrey Sachs of the Earth Institute at Columbia University emphasized some of Africa’s advantages as a latecomer in terms of ‘leapfrogging’ its development, for example by capitalizing on the backlog of technology and its major untapped energy resources: "Africa should be able to achieve at least 10% growth in the coming 15 years of the SDG period".
Participants also discussed the importance of partnerships to finance and achieve ISID. Ambroise Fayolle of the European Investment Bank provided an example of his organization’s work with the African Development Bank Group on renewable energy, whereby Kenya’s largest public-private partnership helped create a 300 MW windfarm close to Lake Turcana. Naoko Ishii of the Global Environment Facility (GEF) also remarked on the importance of a multi-stakeholder platform approach for ISID when she described how UNIDO and GEF are partnering together to help small- and medium-sized enterprises working on renewable energy technologies to access larger markets. Furthermore, Andrea Illy of illycaffè shared how the company's partnership between Ernesto Illy Foundation and UNIDO is aiming to improve agricultural practices in Ethiopia.
Targeted industrial policy and overseas development assistance (ODA) were noted as key for attracting private investment for ISID. Philippe Scholtès of UNIDO and Justin Lin of the National School of Development noted that a stable business environment and focus on clusters or sectors are two potential strategies that could de-risk and attract private investment. Traditional ODA channeled towards industrial zones was highlighted as another way to attract both foreign direct investment (FDI) and leverage private investment. Atsuyuki Oike from the Ministry of Foreign Affairs in Japan noted how ODA can be used as loans for banks that, in turn, extend loans to micro, small and medium-sized enterprises.
After the panelists, discussants spoke about financing and advancing ISID in the context of Ethiopia. Belete Beyene of Hilina Enriched Foods Processing Centre PLC said that access to finance, markets and a reliable supply of raw materials were major constraints for the growth of small enterprises in the country. Ahmed Abtew, Minister of Industry of Ethiopia, went on to describe the Government’s commitment to developing agro-industries, upscaling domestic enterprises and establishing industrial parks. “There is very little we can accomplish with divided and fragmented efforts…We ask [partners] to join us in the stride we are making…by coordinating our effort under the Programme for Country Partnership framework for synergy and complementarity,” Abtew remarked.
His Senegalese counterpart, Aly Ngouille Ndiaye, Minister of Industry and Mining, noted that the allocation of USD 40 million mobilized by the Government of Senegal for the integrated industrial platform of Diamniadio was an important step forward for Senegal’s commitment towards industrialization. Ndiaye said that this engagement will initiate further investments and interventions from technical and financial partners. He also welcomed the exchange of experiences between both the Government of Ethiopia and Senegal with regards to the implementation of industrial parks, and added that such mutual cooperation should be pursued.
Other discussants from the floor included Oumar Seydi from the International Finance Corporation and Fuar Albassam from the OPEC Fund for International Development. Overall, the panel discussion showcased the breadth of support for UNIDO’s partnership model for financing and achieving ISID.