Improving digital access is the best private-sector investment opportunity to achieve the UN Sustainable Development Goals (SDGs) in Africa, according to a new report by the Standard Chartered tagged: Opportunity2030: The Standard Chartered SDG Investment Map.
The study examines the most impactful opportunities for investing in three infrastructure-focused SDGs in five high-growth markets in Africa: Ghana, Kenya, Nigeria, Uganda, and Zambia.
Opportunity2030 reveals
a USD197 billion opportunity for private-sector investors in the five
high-growth African markets with improving digital access making up USD74.5
billion of that total.
The study highlights opportunities for investors to contribute to three
infrastructure-focused goals between now and 2030: SDG 6: Clean Water and
Sanitation, SDG 7: Affordable and Clean Energy and SDG 9: Industry, Innovation
and Infrastructure across emerging markets.
Across all the world’s emerging markets, Oportunity2030 identifies a USD10
trillion opportunity for private sector investors. This represents around 40
per cent of the total funding required to meet specific indicators within the
three SDGs – allowing for population growth as well as maintaining current
access – with public funds expected to provide the bulk of the investment.
Key highlights of the findings include:
- Providing universal digital access represents the greatest investment opportunity for the private sector by 2030 (USD74.5 billion), followed by universal access to power (USD65.8 billion), transport infrastructure (USD46.4 billion) and access to clean water and sanitation (USD10.3 billion)
- The biggest single opportunity across the African markets in the study is in increasing digital access – a combination of mobile phone subscriptions rates and internet connectivity – in Nigeria (USD47.4 billion). Driven by its large and growing population, Nigeria also offers the greatest overall opportunity across the SDG indicators measured (a total of USD114.2 billion), followed by Kenya (USD40 billion)
- Zambia and Kenya present a big opportunity to make an impact on SDG 6 (Clean Water and Sanitation): With an average of 43 per cent and 56 per cent of the population respectively currently lacking access to clean water and sanitation, there is a USD0.7 billion and USD2.3 billion private-sector investment opportunity to help close the gap by 2030
- Uganda presents a meaningful opportunity to make an impact on SDG 7 (Affordable and Clean Energy): with just 22 per cent of the population that have access to electricity, there is a USD6.1 billion private-sector investment opportunity to help achieve universal access by 2030
- The greatest investment opportunity in Ghana is in achieving and maintaining universal access to electricity (a key SDG 7 indicator), representing a USD7.8 billion private-sector opportunity
“The
UN Sustainable Development Goals are amongst the most ambitious projects
humanity has ever attempted. As well as offering our best hope yet of tackling
the world’s most serious challenges, they also offer a unique opportunity for
the private sector. For the goals to be met in Africa, the private sector must
play a central role in deploying capital to get projects off the ground.
Opportunity2030 provides a map of these opportunities, revealing the sectors
and markets where investors can best contribute to the SDGs whilst achieving
sustainable returns,” said Sunil Kaushal, Regional CEO, Africa & Middle
East, Standard Chartered.
“Currently, not
enough capital is reaching the countries that need it the most. With the UN’s
2030 deadline for achieving SDGs just 10 years away, the time to act is now,”
he added.
With Standard Chartered’s experience and reach into Africa, the bank uses
banking knowledge, products and its unique footprint to fund sustainable
development where it matters most. In June 2019, we launched our first
Sustainability Bond, raising EUR 500 million to fund projects aligned to the
SDGs in emerging markets, and have worked with clients and partners to create a
number of important landmark structured solutions to support the SDG’s. The bank
has also launched its digital bank in nine markets in Africa, as part of the
Bank’s digital transformation strategy for Africa. The digital banking solution
provides Standard Chartered customers with affordable, fast and easily
accessible banking services that is supporting financial inclusion in the
markets.
Opportunity2030: SDG private-sector
investment opportunities by African countries in the study:
Market | Water and sanitation (SDG 6) |
Access to power (SDG 7) | Transport infrastructure (SDG 9) | Digital access (SDG 9) | Total |
Nigeria | USD5.7bn | USD32.3bn | USD28.8bn | USD47.4bn | USD114.2bn |
Kenya | USD2.3bn | USD15.6bn | USD9.1bn | USD13.0bn | USD40.0bn |
Ghana | USD0.8bn | USD7.8bn | USD4.1bn | USD6.9bn | USD19.6bn |
Uganda | USD0.8bn | USD6.1bn | USD2.8bn | USD4.0bn | USD13.7bn |
Zambia | USD0.7bn | USD4.0bn | USD1.6bn | USD3.2bn | USD9.5bn |
Total | USD10.3bn | USD65.8bn | USD46.4bn | USD74.5bn | USD197bn |
You can download the full Standard Chartered Opportunity2030 report here (https://bit.ly/2tJM8Tw).