Welcome remarks by Mr. Antonio Pedro - ‘Pre-event on private sector development Forward Faster Now Africa – SDGs Activation Day’

‘Pre-event on private Sector development

Forward Faster Now Africa – SDGs Activation Day’

Welcome Remarks by

Mr. Antonio Pedro, Deputy Executive Secretary

 7 April 2025

      Kampala, Uganda

Excellencies,

Distinguished Guests,

Esteemed Colleagues,

and Friends of Africa’s Development.

It is my pleasure to welcome you to the Forward Faster Now Africa pre-event ahead of the Eleventh Session of the Africa Regional Forum on Sustainable Development. I extend sincere appreciation to the Government of Uganda and to our event hosts, United Nations Global Compact.

A special welcome goes to our colleagues from the business community. Your presence affirms the private sector’s vital role as a driver of Africa’s transformation. This event’s theme Forward Faster Now Africa calls for immediate and collective action. This pre-event, as part of SDG Activation Day, highlights the private sector’s crucial role in delivering the 2030 Agenda.

We convene today in Kampala, five years from the 2030 deadline for achieving the Sustainable Development Goals agreed on in 2015, with the continent off track on nearly all SDG Targets. Progress is lagging globally; only 17% of SDG targets are on track. But in Africa the situation is even more dire, with less than 6% of targets expected to be achieved by 2030[1]. In fact, only 10 out of 144 targets are likely to be achieved if progress continues at the current pace. We must change this reality.

Since 2019, Africa’s GDP growth has averaged 3%, four percentage points below the 7% required to meet the SDGs. Despite hosting nine of the world's fastest-growing economies in 2024, growth across the continent is uneven and we are not generating a sufficient number of decent jobs. This already challenging outlook has been worsened by the polycrises facing the continent: geopolitical conflicts, the ongoing impacts of climate change, and rising debt-servicing costs.

Delivering the SDGs demands more than public sector engagement. It requires joint action across civil society, development partners, and especially the private sector. As underscored in the Addis Ababa Action Agenda and the Forward Faster initiative, business is central to delivering transformation.

Africa stands at a defining moment, with high levels of labour informality and over 113 million people either unemployed or underemployed. Yet with over 60% of its population under 25, with its immense resource potential, and with the AfCFTA unlocking the potential of a $3.4 trillion market, the opportunities are immense. But, ladies and gentlemen, we must remember that potential is not progress. We must unlock this potential inclusively, sustainably, and quickly.

The private sector is not a bystander, rather, it is indispensable to job creation, innovation, and ultimately, ensuring prosperity for all Africans. We must reaffirm our commitment to advancing our shared goals together by moving beyond visions, declarations, plans, and conferences, and translate these outcomes into  concrete actions. While private sector has the reach, innovation, and resources needed to scale solutions across industries and borders, these efforts must be coordinated and integrated with national development strategies to foster synergies, avoid duplication, and accelerate outcomes. When the private sector works in alignment with government and civil society, we unlock a multiplier effect that drives systemic transformation and ensures no one is left behind.

Despite growing interest, Africa attracts only 6.82% of global FDI—far below regions such as Latin America and Asia. Intra-African investment has grown, averaging 21% of total inward FDI between 2020 and 2023, particularly in IT and services.

However, regulatory inconsistencies, macroeconomic volatility, high operational costs, and limited investor protections create barriers that limit the potential gains. Perceived risks, like credit rating biases, also inflate borrowing costs. De-risking investment in the continent, therefore, must be not only a priority, but also a holistic effort that addresses both financial and non-financial risks. This includes regulatory harmonization, improved licensing regimes, streamlined trade procedures, and targeted support for SMEs and value chain integration. Only by addressing these systematically can we build trust, reduce capital costs, and create an investment environment aligned with the 5Ps: People, Prosperity, Planet, Peace, and Partnership[2].

ECA remains committed to supporting member States and African businesses, especially small and medium enterprises through relevant research, policy dialogue, and technical assistance.

This includes the deepening of public-private partnerships, the development of regional value chains, and investment in enabling infrastructure. While the AfCFTA offers a transformative $3.4 trillion market opportunity, realizing its full potential will require bridging significant implementation gaps. The ratification of the AfCFTA protocols on investment, competition, and intellectual property, and on the free movement of people, goods, and services are essential elements of addressing these barriers and creating a business enabling environment. Only then can Africans across the continent reap the full benefits of the AfCFTA.

So what must the private sector do with this information? It must translate vision and plans into actions. SMEs should adopt cost-efficient practices: digitization, renewable energy, shared services, and local sourcing. Business clusters and lean inventory management can also strengthen competitiveness in a volatile global economy[3].

To build financial resilience, SMEs can diversify financing through blended finance, fintech, microcredit, and impact investing. Instruments like loan guarantees and Shariah-compliant Sukuk (Islamic bonds) can help close funding gaps and support growth.

Growth must be inclusive. Growth at all costs deepens inequality, erodes trust, and deepens social tensions. The private sector, especially foreign investors, also has a responsibility to operate with accountability and transparency. Investment is not just a transaction but a social contract. Communities expect businesses to contribute meaningfully to national development, respect local laws and cultures, and promote decent work and human rights. Companies should operate by the principles of the social license to operate, aligning their practices with local development priorities, fostering inclusive value chains, and demonstrating environmental and social stewardship. These expectations are not constraints; they are the foundation for long-term business success in Africa’s markets[4].

We also must prepare for a shifting global trade landscape. Recent global trade realignments, including increased import duties on select goods and the removal of de minimis exemptions for certain countries, present a timely opportunity for Africa.

However, to take advantage of these opportunities, ESG is not optional, it is foundational. Investing in Environmental, Social, and Governance principles strengthens competitiveness and positions Africa to compete in markets where we witness the increase in standards and regulations such as the EU’s CBAMs, deforestation regulations, and due diligence directives that limit the markets in which African business can compete.

As global supply chains shift to mitigate rising costs, Africa with its young population, resource abundance, and the momentum of the AfCFTA has an opportunity to position itself as an alternative production and trade hub. By aligning with global sustainability standards and investing in regional infrastructure and AfCFTA implementation, African economies can attract re-shored manufacturing and diversify trade partnerships.

ECA stands ready to partner with national governments, civil society and the private sector to de-risk Africa’s investment landscape, unlock the benefits of private sector investment, and realize the full potential of SMEs across the continent.

In closing, I urge us to engage deeply, collaborate boldly, and act decisively. Together, we can ensure that Africa’s citizens benefit from the full potential of our continent’s abundant human and natural resources.

I thank you.