20 Sep 2023

An improved global financial architecture and better facilitation of trading routes will enable landlocked developing states to improve their economic performance and meet the aims of the Sustainable Development Goals SDGs).

Addressing the United Nations High Level Dialogue on Financing For Development in New York, United States of America (USA) on Wednesday, the Minister of Finance, Ms Peggy Serame urged global decision makers to ensure a better economic and financing landscape for developing states.

Speaking on behalf of the Landlocked Developing Countries (LLDCs), a group of 32 developing states lacking territorial access to the sea, currently chaired by Botswana, Ms Serame called for better support on debt sustainability.

While there is no single solution to increase our countries fiscal space; we underscore that the steps to do so include national commitments, international public finance and efforts to improve terms and reduce credits spreads associated with commercial borrowing, Ms Serame said.

To bridge global financial gap between the more resourced countries and landlocked developing states, Ms Serame pleaded for better access to funds from international finance institutions with multidimensional support offered to recipients.

She also asked for technical support to accompany financing for climate change mitigation measures including capacity building, enhanced trade facilitation and market access for LLDCs.

Ms Serame further called for improved private sector investment, support for improved domestic resource mobilisation as well as the reduction of the transfer costs of remittances.

In order to take advantage of the opportunities offered by the digital economy and efficient information, LLDCs required support to build capacity, Ms Serame added.

She outlined how the COVID-19 pandemic had intensified resource constraints greatly impacting the development of the transport as well as the Information and Communication (ICT) and energy

sectors.

“The rising energy and food prices, also put additional pressure on fiscal and external balances of commodity importers such as the LLDCs in tight financial conditions,” Ms Serame said.

She said such challenges subdued investment recovery for LLDCs and widen Sustainable Development Goals investment gaps, and required mitigation measures in order for sustainable development financing to be realised.

Ms Serame shared the podium with other high profile speakers, including UN secretary general, Mr Antonio Guterres, president of the World Bank Group, Mr Ajay Banga, the Managing Director of the International Monetary Fund (IMF), Ms Kristalina Georgieva and South African president, Mr Cyril Ramaphosa. ENDS