A set of 17 Global Goals for sustainable development (SDGs) emerged in 2015 within the context of the 2030 Agenda for Sustainable Development.

They advocate an integrated approach to economic, social and environmental issues, and put great emphasis on a development model where the private and public sectors play complementary roles in supporting inclusive and sustainable growth. They also represent a major shift in the strategy in the international community to reach these goals by highlighting private business activity, investment and innovation as major drivers of productivity, inclusive economic growth and job creation. The core mandate of DFIs compels them to contribute to global development, especially poverty eradication, as well as climate goals.

The private sector role in reducing poverty

Broadly acknowledged by the international development community to be a key driver of poverty alleviation, the private sector boosts economic growth, job creation and living conditions, the latter through wider access to health and education, as well as essential goods and services. It also stimulates entrepreneurship and contributes to a more diverse economy. It enables governments to bring in more tax revenue, helping them provide more and better public services.

Many of the countries that have produced the most significant reduction in poverty have followed a model where jobs become the major channel through which economic growth uplifts the poor. More than nine in 10 jobs are created in the private sector in low- and lower-middle-income countries. Each new job lifts five people out of poverty (Source: IFC Job Study Report).

The 2030 Agenda for Sustainable Development

Over the next 15 years, with these goals that universally apply to all, countries will mobilise efforts to end all forms of poverty, fight inequalities and tackle climate change, all while ensuring that no one is left behind.

Addis Ababa Action Agenda on Financing for Development

Highlighting private business activity, investment and innovation as major drivers of productivity, inclusive economic growth and job creation.

Paris Climate Change Agreement

A global action plan to put the world on track to avoid dangerous climate change, the agreement will also have significant implications for climate finance.