Ethiopia demands financing progress on SDGs, reform of global financing system

Addis Ababa, July 22, 2024 (FBC) – Ethiopia’s Finance Minister Ahmed Shide emphasized the need for reinforcing transformative financial frameworks to the Sustainable Development Goals (SDGs) and undertaking comprehensive reform in the global financing system.

The minister also called on all stakeholders to undertake comprehensive reform of the global financing system.

A five-day opening session of the Preparatory Committee for the Fourth International Conference on Financing for Development (FfD4), which aimed at accelerating progress towards achieving SDGs kicked off today in Addis Ababa.

In his opening remarks, Finance Minister Ahmed Shide underscored on promoting innovative financing mechanisms such as Public Private Partnership to mobilize finance for successful realization of SDGs.

“We are here today from every corner of the globe, which played a diverse but indispensable role in critical review of our achievement in jobs and devising sustainable ways to finance our development,” he noted.

Noting that financing for Development is not merely a financial endeavor, the Finance Minister said it is a commitment to justice, equity, and well being of all humanity.

He added Ethiopia has remained committed to the effective implementation of SDGs and his country has been striving to overcome challenges and forge a bright future for its people.

“We embark on an ambitious journey of economic transformation, aiming to lift millions out of poverty, enhance infrastructure, improve education, and ensure health care for all,” he stated.

He further mentioned a practical move Ethiopia has taken to realize SDGs.

“In response to agenda 2030 and our commitment to combat climate change, Ethiopia has made substantial achievements in restoring millions of hectares of degraded landscapes through initiatives such as the Green Legacy initiative. This is the champion initiative by the Prime Minister, which is soliciting millions of Ethiopians every year to participate in these collective actions.”

Ethiopia has managed to increase its national forest cover to 23.6 percent from 14.7 percent in 2014, Ahmed pointed out.

Despite the achievements, developing countries like Ethiopia continue to face significant financing gaps, which affects hard won progress and it has exacerbated by recent global crises such as the COVID-19 pandemic, geopolitical conflict, and economic instability, he indicated.

He also shared his concern about this high debt burden, adding that countries are allocating more resources to debt services rather than investing in basic social services.

Therefore: “Our discussions in the coming days should serve as a reflection on past effort but should also lay out bold actions to ensure the realization of sustainable development goals. We should critically examine the challenges and implement coordinated actions to accelerate the implementation of sustainable development goals.”

In response to these challenges, the Finance Minister called for the Financing for Development Agenda to adapt and evolve.

“We must advocate for comprehensive reform of the international financial architecture, including improving global economic governance, enhancing debt relief measures and reducing cost of sovereign borrowing. We must explore and implement innovative financing solutions to mobilize resources effectively, including public private partnerships.

Mobilizing private investment and strengthening multilateral development banks are also important steps. Innovative climate financing mechanisms such as debt for climate swaps, carbon trading and green bonds should be promoted.”

Speaking on the adoption of Addis Ababa action agenda during the third Financing for Development Conference in 2025, Ahmed revealed that the agenda lays the foundation for a new era of global cooperation and ambition in financing development.

The Addis Ababa action agenda also underscores the need for a comprehensive, holistic and transformative approach to achieve the 2030 Agenda for Sustainable Development, he recalled.

However, the minister stressed the need for addressing gaps in implementing the Addis Ababa Action Agenda, as reported by ENA.

“Let us reaffirm our commitment to the principles of Addis Ababa action agenda and collaborate to a world where Sustainable Development leaves no one behind,” he finally stated.