Challenges to Mobilizing Private Capital in a Recessionary World
Abt Global’s webinar series, Reimagining Private Capital for SDGs, began with a discussion on “Bridging the Private Capital Financing Gap in the Global South.” It detailed the investment opportunities in underinvested sectors and geographies to bridge the staggering USD 4.2 trillion annual gap in financing required to achieve the Sustainable Development Goals (SDGs) by 2030.
In the second webinar, “Challenges to Mobilizing Private Capital in a Recessionary World,” held on July 13, we brought together investment and risk professionals from the development sector to discuss the critical risks, challenges, and potential mitigation strategies involved in mobilizing private capital for such investments. These considerations are critical in the context of a post-pandemic world and rising interest rates.
Private investments in emerging markets have inherent risks given the early-stage business models and systemic political risks associated with investing in social sectors. The COVID-19 pandemic and concurrent global political crises, such as the Russian invasion of Ukraine, have worsened these risks. The World Bank predicts global economic growth will slow sharply to 1.7 percent in 2023. Along with increasing interest rates globally, the slowdown is expected to exacerbate debt distress and access to capital in emerging markets. A conversation on private capital mobilization for SDGs should address these risks and challenges at the outset.
- Arun Asok, Strategic Lead, Private Capital and Impact Investing, Abt Global
- Amy Wang, Head of Credit Strategies, Blue Earth Capital
- Christian Ruehmer, Senior Investment Advisor, Bamboo Capital Partners/ Co-Founder Q-Lana
- Njeri Kirumbi, Regional Director, Africa, WaterEquity
- Pawel Ruchlicki, Director, Hedging & Securities, MFX Solutions
Learn more about the Reimagining Private Capital for SDGs webinar series.