Mr. Chair,
Excellencies,
Distinguished Delegates,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

The Group notes that, in comparison to the Addis Ababa Action Agenda, the chapter on domestic and international private business and finance of the Compromiso de Sevilla has concrete calls to action. In particular, in paragraph 33 a-f, we see a clear goal of increasing foreign direct investment in developing countries to support national development priorities and the SDGs, including through:

- targeted investment mechanisms for SIDS, LDCs, LLDC, and MICs;
- working with institutional investors and the UN system;
- building human and institutional capacity to develop quality project pipelines; and
- technical assistance on private-public partnerships for infrastructure and renewable energy.

The challenge is for the private sector to heed this call and truly increase their investments in developing countries at the needed scale and speed. The cost of capital is much too high for developing countries, reducing competitiveness and integration of MSMEs in regional and global value chains.

Addressing international systemic issues is critical moving forward to give life to these commitments. We need to reduce the risk perception of investing the Global South by reassessing the methodology of credit ratings agencies and looking at the impacts of prudential frameworks, such as Basel III, on lending to enterprises in developing countries. Investing in the development of those most in need can produce long-term returns for the entire world community.

We note that private sector resources are needed to help fill the sustainable development financing gap; but they cannot replace the role of ODA. Therefore, the mobilization of private resources through blended financing holds potential, to catalyze and crowd-in more private resources for sustainable development. These mechanisms must be country-driven and take into account national circumstances. We do not want standards and classifications that will further burden developing countries.

The role of MDBs in the provision of guarantees and first-loss capital is essential and must be scaled up. We want to see more long-term quality investments in portfolios, rather than one-off projects. This may inspire the private sector to also see themselves as stewards for sustainable development. The follow-up of FFD4 can seek to track the volume and areas in which private finance contributes to the SDGs, in pursuit of the objectives of the Compromiso de Sevilla.

We emphasize the positive contribution of migrants to sustainable development, and the importance of remittances and the need to further reduce their costs; in no way should remittances substitute ODA or FDI.

Financial access and literacy is key, at local, national and international levels to ensure no country and no one is left behind.

Thank you.