Addis Ababa, Ethiopia, 29 April 2026 – On the occasion of the twelfth session of the African Regional Forum on Sustainable Development (ARFSD12), the United Nations Economic Commission for Africa (ECA), in partnership with Convergence Blended Finance and the International Institute for Environment and Development (IIED), convened Session II of the Private Sector Forum on blended finance and emerging innovative financial instruments.
This session brought together stakeholders from both the public and private sectors to identify concrete actions to mobilize large-scale investments in support of the Sustainable Development Goals (SDGs). Discussions focused in particular on blended finance mechanisms, innovative debt instruments, and the strengthening of robust, bankable project pipelines capable of attracting private capital.
The discussions highlighted the need to move beyond fragmented initiatives toward coordinated, structured, and investable approaches that can tangibly accelerate SDG implementation over the next 12 months.
Opening the session, Ngone Diop, Director of the ECA Subregional Office for West Africa, underscored the growing fiscal constraints facing African economies and the urgency of adopting new financing approaches: “Shrinking fiscal space in Africa is increasingly limiting countries’ ability to finance sustainable development. We must urgently strengthen innovative financing solutions and public-private partnerships to mobilize investments and accelerate SDG delivery across the continent.”
Placing these challenges within their macroeconomic context, Soumaya Iraqui, Chief of Section at ECA’s Subregional Office for West Africa, drew attention to tightening fiscal conditions in the region: “Fiscal space in West Africa has significantly narrowed between 2020 and 2025, rising from 36 percent to nearly 50 percent of GDP. External debt now accounts for more than a quarter of GDP, making it not only a macroeconomic challenge but also a structural constraint on financing sustainable development.”
She emphasized that these dynamics heighten the urgency of developing innovative financing solutions and strengthening partnerships to unlock sustainable and attractive investment pathways for achieving the SDGs.
In this context, the session placed particular emphasis on debt-for-climate and debt-for-social-development swaps in West Africa, currently being implemented in Senegal, The Gambia, and Ghana. The approach led by ECA, in collaboration with its technical and financial partners, aims to support these countries in structuring credible and bankable operations based on in-depth debt sustainability analysis, the identification of high-impact investment projects, and the coordinated mobilization of creditors and investors. These mechanisms offer concrete opportunities to expand fiscal space, reduce the cost of capital, and finance transformative investments in climate action and social development.
The session also highlighted that blended finance, risk-sharing mechanisms, and improved project preparation are critical levers for mobilizing private capital and closing the SDG financing gap in Africa.
Participants agreed that strengthening coordination among public institutions, development finance actors, and the private sector will be key to transforming promising initiatives into bankable solutions capable of delivering rapid, large-scale impact.
This session was held as part of the ARFSD12 Private Sector Forum, under the theme: “Driving faster progress: strengthening partnerships with the private sector to accelerate the SDGs in Africa.”
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org