Govt identifies 5 sources to fill SDG financing gap

Published : 20 Feb 2020 08:19 PM | Updated : 07 Sep 2020 03:34 PM

Foreign Minister Dr AK Abdul Momen on Thursday said that the government had identified five potential sources of filling up the gap of financing SDGs to achieve those 17 goals by 2030.  He said about half of those funds would come from the private sector. He was speaking at a SDG report launching ceremony in Dhaka. The Green Delta Insurance Company Ltd launched the report which is first in Bangladesh by any private sector entity.

 “This speaks of sincere sense of responsibility and a matchless vision by the management of the Company which is exemplary for all other private sector bodies, both in Bangladesh and abroad,” Dr Momen appreciated.  He said the present government is aimed at transforming Bangladesh into a prosperous nation. The government is also focused on achieving the SDGs by 2030.

 He said the estimates in Bangladesh show that an additional amount of $ 928.48 billion would be needed at 2015-16 constant prices for achievement of SDGs. This amount is around 20 percent of Bangladesh’s accumulated GDP.  “There is simply no way that we can manage this colossal amount through traditional financing methods,” he said, sharing five ways that the government had identified to fill the gap.

 In approximate value these are: 1. Private Sector Financing for 42 percent, 2. Public Sector Financing for 34 percent, 3. Public-Private Partnership (PPP) accounting for 6 percent, 4. External Financing comprising Foreign Direct Investment (FDI), Foreign aid and grants will contribute 15 percent and at number 5. Non-Governmental Organizations (NGOs) will bring in around 4 percent.

 “So, we see that with private sector contributing 42 percent and Public-Private Partnership (PPP) accounting for 6 percent, almost half of the total finance for SDGs will have to come from the private sector,” he said.  He lauded the report and said while “the SDGs rely on business contributions to be successful, business does not, at least in the short-term, rely on the SDGs for its commercial success.”

 “Here I would raise a bit of caution that whether it is for short term or for long term, we should always make it sure that business supports the sustainable development otherwise, by destroying our planet, we all will be out of business forever.”  According to the report, Green Delta has chosen 10 priority SDGs based on their business engagements and social contribution. Their programme ‘Nibedita’ is an ideal product of corporate social responsibility.

 Nibedita has brought Green Delta Insurance global recognition and it is the first insurance product in South East Asia that has been exclusively developed for women and women empowerment. Nibedita works as a support partner for women to help them reach their goals in the society, workplace and within familial settings.

 “I believe that the role of private sector and active contribution of the private entities like Green Delta will be useful in setting up Bangladesh’s strategic choices to reach not only the achievement of SDGs by 2030 but also smooth and sustainable LDC graduation by 2024 and becoming a developed country by 2041,” the foreign minister said.

 British High Commissioner Robert Chatterson-Dickson, UN Resident Coordinator Mia Seppo, and former foreign secretary of Bangladesh Farooq Sobhan were also present, among others.